Selling and buying a home at the same time requires good planning and some extra effort. However, there are advantages too, like saving time and better terms to facing the payment of the new home.
Being patient is essential to approach this type of situation. We also recommend not rushing into decisions and following some steps that will guide the way.
Steps to sell and buy a home at the same time
1. Analyze the real estate market
On the one hand, it is convenient to analyze the prices in the area where you want to buy the home. On the other hand, you must have a valuation of the property to be sold. Ideally, there is a profit margin.
A good tip is to look for opportunities in expanding areas. In them, the prices are more affordable and, when they reach their full development, they will have all the necessary services.
2. Sell and buy a house, in that order
When you decide to buy and sell a home, it is advisable not to wait to get your home on the market. The sale will always take time, and in the meantime, you can find that new home you need and negotiate financing with the bank.
You also have to take into account the possibility of negotiating the terms with the buyer. If you are lucky and the sale agreement occurs earlier than expected, you may establish a waiting period to quit the home in the deposit contract. Six months is a reasonable time.
And you can also sign something similar in the opposite case: if you find your dream home, but you still haven't sold your old one. In that case, it may be possible to delay the purchase agreement, though it isn't the ideal situation. The most desirable scenario would be that the sale gets closed before buying.
3. Review your financial situation
Selling and buying a home entails costs, both management and tax. Besides, there might be additional expenses for moving or making renovations. Never forget to calculate them before selling and buying a home. It is advisable to have a small financial cushion to help resolve unforeseen events and negotiate with the bank in advance.
Selling a home and buying another one at the same time gets considered as a reinvestment. There is no capital gain and, therefore, there will be no tax for it. The only condition is that the total amount obtained on the sale goes to the new home purchase.
4. Negotiate with the bank
When your old home has a mortgage, there are several alternatives. You can cancel the old one and request a new one, opt for subrogation or apply for a bridging mortgage. The best scenario would be that the sale allows the payment of the new home without financing.
If you desire to sell and buy a home, Spainhouses.net is the tool that will help you achieve it. On the one hand, you have a section on price statistics by area and their evolution over time that will allow you to know the situation of the real estate market. On the other hand, you can advertise your property and search for your ideal home among the best portfolio of homes available. Do not wait any longer to fulfil your dreams.