The sale of one property and the purchase of another generally raise many questions. Buying and selling at the same time can be a source of stress, whether it is linked to the financial aspect, questions of timing, or even more organizational matters.
Several solutions can be put in place so that the sale and purchase of your new property takes place under the best conditions:
Solution 1:
Take advantage of the time between the sales agreement and the final act of sale. The law does not impose any time limit between these two signatures. Usually, it is 2 to 4 months but can be longer. You can therefore take advantage of this period to sell your house before signing the deed of sale for your future property, and vice versa. It is possible to match the signatures of the two documents, one in the morning and the other in the afternoon, don’t hesitate!
Solution 2:
You can also include a suspense clause for your current property in the sales agreement for your future home. This solution must be negotiated with the seller; he is not obliged to accept. This clause specifies that the purchase of the new property will not take place if your current property is not sold.
Solution 3:
Take out a bridging loan: this credit solution can allow you to obtain financing for the purchase of your new house (or your new apartment) while you have not yet sold yours. In other words, it is a transition credit, of approximately 12 to 24 months, allowing you to have a partial advance for the purchase of real estate. A multitude of offers exist on the market. The faster you sell the less money your credit will cost you!
Solution 4:
Go through a purchase-resale loan. This credit can allow you to sell and buy at the same time with a debt ratio that is often lower than that of a bridging loan. Less known, the purchase-resale loan combines financing for the purchase and sale in a single loan.
Generally, the first problem regarding the simultaneous purchase and sale of real estate is financial. Fortunately, banks have adapted and solutions exist to facilitate these banking movements. To find the best financing method, use our real estate rate comparator. It will allow you to find the most advantageous rate according to your profile!
Is It Possible To Buy Before Selling Without A Bridging Loan?
The bridging loan can be an interesting solution to help you realize your real estate project if you are financially stuck. On the other hand, it is also entirely possible to buy before selling without a bridging loan. A bridging loan is a short-term, transitional loan that allows a buyer to finance the purchase of a new property before finalizing the sale of another property.
The bank advances the funds for the new accommodation while awaiting the sale of the old one. Often advantageous, it nevertheless has some disadvantages, such as its cost, its duration, etc.
To avoid this, you can:
Make the sale and purchase coincide. It is possible to put your property up for sale and come to an agreement with the buyer so that the sale does not take effect until 4 to 6 months later (via the sales agreement). You can also negotiate the addition of a suspense clause to your sales agreement that you sign with the seller. However, this coordination is not always possible or easy to install.
Take out a purchase-resale loan, a solution implemented in this year quite similar to the bridging loan but less known. This loan integrates the bridging loan and at the same time repurchases the remaining capital owed on your previous property. Compared to the bridging loan, the purchase-resale loan allows you to have only one monthly payment, over a longer period, and gives you up to 2 years to sell your property.
Sell your property to a new player in the real estate sector such as Joe Homebuyer Sacramento. This start-up is part of the buyer category. You can buy your home in 2 months maximum. 24 hours to 48 hours are enough for you to receive a purchase offer if you accept it, the steps that follow very quickly. The algorithms developed and used by Joe Homebuyer Sacramento allow a precise and rapid estimation of the price of the property for sale based on the market. You can also choose the other formula offered by the start-up: give it an exclusive mandate, which commits to selling your property within 3 months.