Скачать или смотреть "Buy before Sell" vs "Sell before Buy" - Best Strategy in Honolulu's real estate market

Aloha! George Krischke with Honolulu HI 5.

Let’s say you do not have:
a.) enough cash, or
b.) financial strength to comfortably qualify and carry both mortgages.
What is the best strategy to successfully complete this sideways move in Honolulu’s real estate market?

1.) Buy before Sell - Not good:

"When we see what we like then we want to make an offer, subject to the sale of their existing home."

This type of home sale contingency puts you in a weak negotiation position on the buy side. It also puts you in a weak negotiating position on the sell side because of the pressure to have to sell your home quickly. – This is like pushing on a string. Not good.

2.) Sell before buy - The better approach:

We structure both, sell and buy transactions carefully as follows:

Step one:
Prepare your current home to market and sell at top dollar by:
a.) Un-cluttering and cleaning,
b.) Completing all needed cost effective repairs,
c.) Completing cosmetic upgrades that will make your home look the very best. We are aiming for mass curb appeal combined with maximum marketing exposure to attract a large number of buyers to get the highest possible price for your home that the market could bear.

Step two:
Once we have identified the right buyer willing to pay your desired sales price we will add in the sales contract two important special terms:
a.) “The contract to sell your current home is contingent on an accepted purchase contract on a suitable replacement property within 7 days of the acceptance of the sales contract for your current home.”
b.) “You reserve the right to occupy your current home for up to 3 days beyond the closing date”.

Step three:
Once we have an accepted sales contract with both important provisions on your existing home, we will then aggressively explore all options for a suitable replacement home.
Here are a few scenarios that can happen in the order of desirability:
a.) We enter into an accepted purchase contract on your replacement home contingent on the simultaneous recordation of your current home. Because your current home is already in escrow and scheduled to record soon, you have the strongest negotiation position. You look golden to the seller and the seller would be delighted to accept your offer.
b.) If we identified a good replacement property but did not enter into an accepted purchase contract within the 7-day contingency time period, we could possibly negotiate an additional few days extension with the buyer of your current property.
c.) In case we could not secure a suitable replacement property within the contingency time period, you or the buyer may cancel the purchase contract and you get to keep your current home. Nothing is lost, you still got your home. You may continue marketing your home until you succeed the next time.
d.) Or, …you may remove the contingency and opt to sell your home regardless we could not secure your replacement home.

The ‘sell before buy’ strategy represents the right approach for most situations. It offers far more benefits compared to the ‘buy before sell’ strategy.
You are in a much stronger negotiation position on both the sell and buy side.

Summary:
What we accomplished with the right strategy by properly structuring your ‘sell and buy’ move:
1.) We obtained the highest possible sales price for your current home.
2.) We successfully increased your purchasing power and got you into the strongest negotiation position on the buy side increasing your chances on getting the best deal to buy your replacement home.
3.) We maintained all options, including the option to keep your current home if we could not find the right property with acceptable terms.
4.) We eliminated the need to move twice.
How is that for the tip of the day?

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~ Mahalo & Aloha

More here:
https://www.HonoluluHi5.com
https://www.honoluluhi5.com/blog/