For many people either moving or retiring to Maui, the process begins with selling your current home. The process of selling your current home and buying a new one may feel daunting, so I thought this short article about timing might be helpful for you.
Selling Before Buying?
It's not uncommon for buyers to not really know where to start when they already own a home but want to make a move. After all, you need cash for a down payment and closing costs on your new home, but your cash is probably tied up in equity in your current home. That means you probably want to sell your current home first, but you also don't want to be stuck with nowhere to live while you look to buy a new home.
Ideally, you want to wait until you have an offer on your home before you seriously start looking for a new home to buy here on Maui. I you are in a market where there is a lot of inventory and homes are taking a while to sell, it may be best to list your home sooner.
Conversely, if you find a home on Maui that you want to purchase, you may want to make your purchase offer contingent on the sale of your current home.
Most bridge loans have a term of only six months, which is plenty of time to sell your old home in most markets. If you think your home will not sell within six months, you will need to work out a longer term with your lender. In addition, be aware that most bridge loans are due in full as soon as your home sells.
Either way you go, the important thing is to start your transition to Maui as soon as you can and give yourself enough time to easily manage the move.