You are already an owner and you are about to change your accommodation. Sell or buy first, what is the best choice for both financing and organization?
Selling and buying are two processes that have their advantages and disadvantages.
Sell to buy your new home
Sell or buy first, there is something to hesitate! Starting with the sale of your home seems more reassuring because you never know how much time will elapse before finding the right buyer. Not to mention that there is always a risk of withdrawal from it.
Once you know the actual sale price for your old home, you can more easily budget for a new investment. Selling to buy is therefore more comfortable, especially since this contribution can also help you negotiate a new mortgage if necessary.
Once you find a reliable buyer, you will have more freedom in your property search . And if you don’t fall in love with the sale of your accommodation, you will still have the possibility of temporarily renting another accommodation. Too many owner-sellers anxious at the idea of having no more roofs end up buying a new home for security, which does not exactly correspond to their desires.
Selling before buying a home can also be a source of stress and additional expense, including an additional move or storage costs for your furniture.
Buying before selling your home
To avoid missing out on a good deal, it is entirely possible to buy housing before selling the old one. The biggest risk in this type of transaction is that the sale of your old home takes too long and that you end up paying off two mortgage loans at the same time.
However, no one is immune to a crush on a house or an apartment. Especially since by buying your new home first, you will have time to move as you go and possibly do some work before you settle in.
Do not forget that there are methods to sell a property quickly , in particular by making correctly assess the value of your accommodation or by carrying out some home staging work .
If your property is really slow to sell, you can also consider owning it and renting it out . You will benefit from regular rents which will help you to repay your mortgage for a new acquisition.
When choosing to buy before selling, you will need to establish your purchasing budget based on the estimated selling price of your current home. However, it may be that you ultimately sell your property for less, so be careful when setting up your financing plan.
Selling or buying: financing solutions
It is no easier to calculate your budget when you want to buy and sell in the same period than when you buy for the first time.
In the event that you cannot make the sale and the purchase coincide, you can always use the bridging loan. This credit makes it possible to finance between 60% and 80% of the new property. The capital is then reimbursed with the sum of the sale of the old property.
The other possible option is the resale purchase loan. This type of loan is especially useful if you have not finished paying off your first home loan. Thus the two loans are combined with advantageous conditions (reduced rates, no fees in case of early repayment).
The only constraint to sell and buy: time
All is not played at the time of the compromise of sale. The buyer has 10 days to withdraw. Then he has to get an agreement from the bank for the mortgage. It therefore takes between 3 and 4 months between the signing of the sales agreement and that of the final act of sale.
It is not easy to organize to sell and buy at the same time. To avoid being homeless, if the sale takes place before the purchase, you can negotiate a long sale with the future buyer . That is to say, postpone the delivery date of the keys by a few weeks up to 3 months to take the time to settle elsewhere. This agreement gives rise to financial compensation paid to the buyer by the seller. The latter will only receive the full sale price once the premises have been freed from all occupation.
In conclusion, between buying and selling first, there is no better solution Zoom Property. It all depends on your personal situation, a crush, the state of the real estate market (favorable for sale or not). Do not hesitate to seek advice from a real estate professional.