Email us Call us

How to Buy and Sell Real Estate at the Same Time

If your current Hawaiian paradise in Lahaina real estate is feeling too tight, or if you’re unhappy with your neighborhood, you may be dreaming of beach homes or Kihei homes for sale. Moving to a new home is not always an easy process, though, especially if you also have to navigate selling your current property. Buying a new home while your current home is on the market can be complicated.
Don’t let that turn you off, though! Your dream home is out there, if you’re ready to find it. So, here is everything you need to know before you list or buy.

Remember: you’re not alone

Looking at or listing Lahaina real estate can feel a little overwhelming, and if you don’t know anyone else who is doing the same thing you are, it can also feel isolating. There will be times in this juggling act where you think, “Wow, maybe I can’t do this. Maybe it’s not realistic.” Take a deep breath!
In 2019, the National Association of Realtors shared that about 71% of repeat home buyers also owned their previous homes. That means that most of these people acted as both buyers and sellers simultaneously. It’s doable!

Consider your finances

Photo courtesy of Pexels
Before you start looking at Kihei homes for sale, think about what you’re going to do about your down payment on that home. There’s a good chance you have a lot of money and equity tied up in your current property. Lahaina real estate has seen a big jump in price in the past few years, so you will probably even make money on the sale.
However, if most of your money is tied up in your current home, you may not be able to put that money down on your new dream home. The average down payment for a home in the United States is about 5 to 6%, which is significantly lower than the 15 to 25% that buyers were putting down a decade ago. Consider how much you can realistically afford to put down on a new residence, and decide whether you will buy or sell first.

If you plan to sell first

Photo courtesy of Unsplash
If you are planning on selling your current Lahaina real estate before buying a new one to gain access to your equity and put it towards your new home, the first step shouldn’t be to look for your dream home. Even with the market cooling off, homes are still very much in demand, and you might end up heartbroken and discouraged if you find your dream home only to have it snatched off the market.
When you are planning to list before you buy, work to get your home in proper shape. That means deep cleaning your house to get it ready for buyers, decluttering everything, and organizing what is left. You may want to pack up everything you aren’t going to need between now and when you sell and store it away in your basement, garage, or another location entirely.
Curb appeal also sells homes. Before you list your property, take a look at the exterior of your home. Condo owners don’t have to worry so much, but owners of a single-family home should take great care to ensure the home's exterior is neat, the walkway and driveway are clean, and all of the flower beds are weeded and full of thriving flowers or plants. These things are easy to overlook when you’re overwhelmed by the idea of selling your home and buying another one, but this is an essential step in inspiring buyers to make an offer.
Finally, ensure that any repairs you have been putting off are complete. If you have a squeaky door, a leaky sink, or a clogged drain, get it fixed now. Bigger things like roof issues or major plumbing problems can be handled on a case-by-case basis, but the more repairs you make, the faster the sale will go through.
The biggest problem is that some sellers run into a gap period, or the time between when their home sells and when they can buy. It’s a good idea to have a backup plan for this gap period, such as staying in an extended-stay hotel for a while as you search for your new home.

If you plan to buy first

Photo courtesy of Pexels
If you can float the down payment and feel good about looking at Kihei homes for sale before you finalize your sale, make certain you know your finances inside and out. If you purchase but your current home doesn’t sell for six weeks, can you handle having both properties?
A bridge loan is an option here for some families. This is essentially a short-term loan that will cover the costs during the gap, for a fee. This will come down to many factors, including your credit and the value of your current home. Your realtor and bank will help determine if a bridge loan is right for you.
If you’re concerned about managing both of your properties, you can also try to place a contingent offer on the new home you are looking at. Then, your offer would be contingent on selling your current home. This can be tough in a seller’s market, but depending on other aspects of your offer, this may be a good option.
Ultimately, in this hot market, it can make sense to buy before you sell. It may take you a lot longer than you anticipated before you find the perfect new home that fits within your budget, and you don’t want to be caught with a considerable gap period.

Logistics matter

There is a lot of juggling when it comes to buying and selling simultaneously, and the most important thing you can do is have a skilled, experienced team on your side. A professional realtor can help assess your current Hawaii or Lahaina real estate, give you a proper estimate on what it could sell for and how fast, and find you the perfect buyer faster. They will also be able to help guide you when it comes to choosing Hawaii, Lahaina, or Kihei homes for sale that check all the boxes.
When you are ready to get the process started, or if you just want to talk about your options, call the ‘Ohana Real Estate Team today. This group has extensive experience with Lahaina real estate and knows how stressful this time in your life can be. They will help you navigate the ins and outs of buying and selling to take the stress off your shoulders.

*Header photo courtesy of Unsplash

Work With Us

We pride ourselves in being able to provide a high level of service to all types of sellers and buyers. We are here to help you achieve all your real estate goals here in Hawaii.