How to Buy and Sell a house or property at the Same Time? (+Pros, Cons, Things to Consider): Buying and selling a house at the same time can be a replica, but sometimes the market presents an opportunity that is simply too good to ignore. If you are thinking about a considerable offer with limited time or are interested in a prestigious property before it disappears from the market, it is possible that the only answer is to buy and sell houses or apartments at the same time. You can simply check 2D floor plans (or, 3D floor plans if these are with accurate measurements), to understand the layouts and size of the houses and take the decisions faster.
First, you must know if this is what suits you right now, so let’s see the pros and cons:
Pros when do Buy and Sell a house or property at the Same Time:
- Less paperwork time
- Qualifying for a new mortgage is easier
- Easier to invest in the new property
Cons when do Buy and Sell a house or property at the Same Time:
- Hurry to buy the new house after the sale,
- Double moving costs,
- The limbo between one move and the other
Things to consider when do Buy and Sell a house or property at the Same Time:
Know the market in your area
Before starting the process of selling to buy a house, you need to know what is happening in the current real estate market.
You should consider the following factors:
- Price per m2 of the area in which you are going to sell.
- Price per m2 in the areas in which you are interested in buying.
- Price evolution in recent years.
- Expanding areas.
Knowing all these factors will help you make the right decision by taking a little benefit from this investment.
First sell, then buy
Selling your house first you will have funds to reinvest in another home. In this case, the order of the factors does alter the product and also complicates it since:
If you decide to buy first and sell later, the following inconveniences arise:
- You will not be able to liquidate the previous mortgage until you sell your new house or have sufficient funds to do so.
- It will be very difficult for the bank to grant you a new mortgage without having liquidated the previous one.
- There is a possibility that you will not be able to sell your house. In this case, you will have to maintain two houses with a fairly high economic burden.
Therefore, it is better to be cautious and analyze every step and decision we make.
Time is the most important factor when selling and buying a house at the same time. Therefore, when you get to sell your house you must agree on the contract of drag the time you need.
It is recommended to request a period of at least 6 months. So you can find your dream home with peace of mind and even make reforms if necessary.
Analyze all expenses
When selling and buying a house at the same time, many expenses and taxes arise that we must take into account:
- Expenses derived from the sale of a house.
- Household transfer taxes for sale.
- Possible settlement of the mortgage in progress.
- Expenses derived from the purchase of a house.
- Home transfer taxes for the purchase.
- Possible need to establish a new mortgage.
- Moving expenses.
- Possible need to make reforms in the new home.
It is very important to calculate all the costs of selling and buying housing at the same time.
Finish the details with the mortgage
It is not usually possible to pay all the debt at once before selling a mortgaged house. Therefore, it is better to go to your bank and ask a mortgage expert for advice. So you can clarify all doubts about your current loan.
In any case, the main options when selling a house with a mortgage are:
- Cancel the mortgage if you sell for a higher price.
- Cancel the mortgage if you sell for a lower price.
- Subrogate the mortgage.
- Bridge mortgage (a mortgage designed for cases in which a home is sold to buy another).
Do you already know everything you need to know? Well then go for that house of your dreams!
Buying a House and Selling a House at the Same Time – By Kristin LaVanway
How Buying and Selling Your Home at the Same Time Works – By Javier Vidana
11 Tips On Selling and Buying Your Home At The Same Time (Arizona Specific) – By Victor Huerta