Sell, then buy. Or buy before you sell … A real headache! Do you dislike the prospect of having to rent accommodation for a while? Don’t want to hear about bridging loans? Advantages and precautions for buying well before or after resale.
Sell or buy first? This is the question posed by many owners who want to change their accommodation. In the first hypothesis, you are afraid of not finding the apartment or house of your dreams in time, and of being forced to rent accommodation in the meantime. In the second, you are anxious about the idea of committing to a poorly controlled bridge loan. So what is the best solution? What are the advantages and precautions for buying well before or after a resale.
Learn More About Buy or Sell First House from: HOMEiA – Home Selling Guides
1- The advantages of selling first
Gain some peace of mind
By first selling your current home, you shelter yourself from an obvious stress: that of not finding a buyer in time, and of being forced to bear the costs of two homes!
Know the amount you have
The real estate market is not an exact science, you cannot know when you will sell, or if you will be able to sell at the expected price. Put your property up for sale early enough to give you time to find a buyer. Certain goods find takers very quickly; this is the case for small surfaces in Paris. But most often, you have to agree to wait a few weeks or even months before finding your buyer.
‘If you are in a hurry to sell, you will be tempted to lower the price quickly to optimize your chances of selling quickly;
If you are not in a hurry, you allow time for a buyer to discover your property. And if you have estimated your accommodation at a fair price, you will not have to negotiate it down.
Thus, you will be able to orient your searches by selecting the advertisements corresponding precisely to your budget. You will therefore be much more efficient in your research, and if you have the “crush”, you can immediately make a proposal to the seller!
2- The precautions to take if you sell first
When you have found a buyer and signed the promise to sell, all is not yet won. Indeed, the purchaser has a period of 10 days to retract. It will also be necessary to wait until he obtains his mortgage to be sure that the transaction is carried out. Between the promise to sell and the final signing of the deed of sale at the notary’s office, there is generally three months. What to start your own research.
What to do if you find your new home before signing the deed of sale for the property you are selling? If you are very close to the deadline for signing the sale, your buyer has obtained his credits and all the conditions precedent are lifted (the town planning certificate did not reveal any easements; the city or a former tenant have not exercised a possible right of first refusal …), the risk is reduced. You will be able to sign the sales agreement.
But if you want to avoid taking the slightest risk, you can suggest to your seller that you include in the sales agreement a clause conditioning your purchase on the sale of your property.
Rent or stay in the premises?
When you have sold your property, two scenarios may arise:
Either you have not yet bought a new home, and you are going to rent, while you find the gem.
Either you have quickly found your new place of life, but with the usual delay of three months which separates the signature of the compromise from that of the final deed of sale, you find yourself for some time without accommodation.
It is therefore in your best interest to consider with your buyer a period a little longer than the usual period of three months between the signing of the compromise and that of the act of sale. If your buyer is not in a hurry and accepts it, this gives you time to find and make the deal.
Some buyers sometimes accept that the seller remains in the premises after having sold, for one or two months, to allow the transition between the two homes. This can be negotiable provided that your buyer is not too eager to enter the premises, that a relationship of trust has been established between him and you, and that the time is reasonable. In this case, financial compensation is always provided, the sequestration of part of the sale price, pending the release of the premises, and the establishment of a dissuasive indemnity in the event of delay.
3- The advantages to buy first
If you buy first, you will not be forced to rent and will therefore save a move. You can also plan without haste any work on the new home before you settle in.
Do not miss an opportunity
You didn’t necessarily plan to move so quickly. While you are touring the various municipalities located within reasonable distance from your workplace, you will find out by consulting the PAP advertisements (on your smartphone, for example) of the houses for sale. It may happen that on the first visit, you come across the house of your dreams and you decide to buy it! A crush or a great opportunity often encourage individuals to buy before selling.
4- The precautions to take if you buy first
Do not overestimate your property. You are going to set up your financing plan while not knowing with certainty the amount that you can withdraw from the sale of your home. It is therefore necessary to evaluate it as accurately as possible and above all not to overestimate it, so as not to invest more than you can!
