Welcome back to The Scoop with The Oahuist
My name is Bridget Townsend, and I'm a realtor with Corcoran Pacific Properties. Today we're going to talk about some of the MythBusters about real estate in Hawaii - the timeline of buying and selling a property.
This is one of the questions that someone close to us is asked, and we want to address it because it's important to understand all the steps involved in the process, and which to do, when.
So let's talk about timing. You know, typically, when I start working with someone that is interested in purchasing a property, it's important to have a plan of what you want to do, first.
Where Does The Timeline Start?
I have six steps to buying a home that I like to go over with my buyers, but most buyers start with step three - searching for a new home, then try to figure out everything else later.
The first step should be getting pre-approved. Why? That process takes time. Lenders are busy, and they will prioritize buyers who've already taken the time to get pre-approved.
If the lender has a number of other properties in escrow, they're going to be the priority. So you do want to a lot about a week to two weeks for them to get back your pre-approval.
Of course, if you find a home right away, and you want to move immediately, that may be possible. The important part is getting the process started as early as possible.
Contact A Lender
I would definitely recommend that you contact a lender. If they're asking for all of your doc's, such as tax returns, bank statements, and earning statements, you'll know you're on the right track to getting pre-approved.
This is also important because many sellers and their agents are asking for an approval letter before even allowing you to tour the property. This way, they know you're a serious buyer.
Again, the process of getting pre-approved can take a couple of days, it could take weeks, it could take months. It mostly depends on how organized you are with all of your documents, and how quickly you can get those over to the lender for review. Then of course, the lender's time.
How To Know A Property Is A Good Fit?
I like all of my buyers to come and sit down and do a consultation, a one-on-one, face-to-face, it could be zoom, one of my favorite questions to ask buyers is how they prioritize these four categories:
- Amenities of the neighborhood or building
- Features of the home
I'm always really surprised when I talk to people and couples, because sometimes those things don't align for all parties.
Once you have sat down to do a consultation, we understand what you want to accomplish, and what you're looking for within your budget.
What About All-Cash Buyers?
If you have all cash and you don't want to inspect the home, which I do not recommend, you can purchase a home in a couple of weeks. It also depends what's going on in the market.
When the interest rates drop significantly during the pandemic, lenders were backlogged with purchases, and forcing closer to 60-day closes. Sometimes these transactions take time.
People like to see what's out there, know that when they do make an offer they're getting the value they are seeking, and they know that value is there because they've toured enough properties beforehand.
That's where having a good real estate agent is so critical to this process. We can show you the exact properties that have sold recently, the condition of those homes, maybe if the buyer received a credit for repairs.
How Do You Get Started?
There are a number of varying factors for us to determine what the true value is in a home, and I can present that to you based on my years of experience.
But it's always best to see it for yourself while touring homes with me. As they say, "Experience is the greatest teacher."
I you're considering buying or selling a home in Hawaii, and would like to know more about the timeline for both, please connect with my team and me using the details below. We'd love to provide more insights into this exciting process, and what it'll look like for you.