Selling your home before buying the new one?
When you are already a homeowner, it is certain that you will start with a great advantage in order to invest in another property. By putting your property on sale before buying another one, you can also estimate what budget will be available for the next purchase. Once the estimate has been made by a professional, it becomes clearer, even if this estimate can then be revised downwards.
If you know in advance of the future budget available it is obviously easier to start negotiations on a future mortgage. Especially if you're looking to buy something more expensive, something bigger. This saves valuable time, which is useful for focusing on more precise, logical research.
In addition, once the promise or compromise of sale is signed, the person who sold keeps 2 or 3 months before having to leave the premises permanently. This can be a very useful time to find a new home and take the time to move in. We can also arrange with the buyer to benefit from even more time and if this is still not enough, we can also take out a bridge loan so that we do not have to take on a temporary rental and thus save ourselves a double move.
Buy a new home before you sell the old one?
If there is an undeniable advantage to buying a new home before selling the old one, it is to have a solution that avoids being outside, whether for weeks or even sometimes months.
By buying before selling, we allow ourselves to anticipate. This anticipation also has the advantage of having a maximum of opportunities and therefore always more choices.
Indeed, we can thus maximize our chances of finding the perfect property, the one that best suits us and meets all our criteria. Buying before selling is made possible thanks to the "relay" option which allows you to take advantage of a loan as quickly as possible.
Thus, your bank allows you to borrow according to the selling price of the property you are selling.
Whatever the preferred solution concerning the order of sales, there are two pitfalls to avoid if you do not want to be trapped.
For example, if you choose to buy your property before selling, you should not overestimate the price of the property you are selling. You may find yourself borrowing more than you want to to invest in your new location. This is why it is always necessary to have one or even two professionals, whether notaries or real estate agents, estimate your home for sale. Moreover, if your home benefits from professional expertise, its sale will be all the easier.
If you choose to sell before buying, it is important to be aware that a promise to sell or a compromise does not in any way constitute a total and definitive sale. The deed of sale, signed before a notary, is the only valid document.
Don't forget either that it is never advisable to rush once you have signed the sales agreement as to the choice of your new property.
And if you get your new property before you have made the final sale, it seems logical and thoughtful to agree on a suspension of purchase clause for the sale of the current property.
For further advice, our luxury real estate agencies Barnes Côte Basque and their advisors are at your disposal.