10 tips for a successful real estate purchase and sale project
As a second time buyer, you are not only looking for a new real estate purchase, but you also need to sell your current main residence. Clearly, since you already have assets, you are entering the buyer market with a strong argument and a real chance of getting the property that meets all your expectations. However, in order for this transition to take place in the best way, several important elements should be anticipated. Indeed, between the sale of your old main residence and the purchase of the new one, you will have a lot of administrative formalities to plan for such as the Sales file, theProperty act, not to mention that it will be necessary to be as well organized as possible to optimize the whole process. Here are 10 useful tips to successfully complete your buy-sell project.
1. Clearly determine your project: value of the property to be resold, requirements for new housing
Buying and selling cannot be improvised. To get started, we therefore advise you to clearly define all the contours (and even some details) of your project. Start by looking at the property you currently own: ask a professional for a real estate valuation, so you know how much you can get out of it. At the same time, you can depersonalize during a sale to enhance the value of the property. Discover in this article how to know the value of an atypical property.
Then, focus on your purchase project: will your future home be, in principle, more or less expensive than the old one? Will you need to supplement the contribution provided by the sale? What will you be left with from this sale if you still have some of the previous credit to repay?
If you already know that you cannot proceed without a loan, do not forget to ask yourself the question of the amount you are going to ask the bank, the period over which you want to commit or your debt ratio, in order to always maintain good purchasing power.
At HOME SELECT, we support you in all stages of your purchase/sale. From your first thoughts, we help you answer the main questions that are emerging, while starting to anticipate what elements need to be answered.
2. Research the local market to identify the best strategies
The organization of your purchase-sale project will clearly be conditioned by the state of the local market. This is the reason why, before embarking on any process of visiting or publishing an announcement, we strongly recommend that you take the time to know the context with which you will have to deal with.
For example, it may be appropriate to ask a real estate specialist how long it will take for your current home to sell theoretically. This estimate will help you better guide your visits and find the right tempo.
In very tense cities, where demand still exceeds supply, it is generally advisable to buy as soon as the opportunity arises, even if the current property is not sold. On the other hand, if you are in a less dynamic area in the real estate sector, you may be able to afford to wait for the sale before starting to search.
At HOME SELECT, we know perfectly the geographical sectors in which we work. Our total control of the market allows us to support our customers in the most agile way possible in their decisions, by providing them with an expert perspective that is both relevant and reassuring.
3. Anticipate the loan request
When you have finally found the property that meets all your expectations, you can make an offer to purchase and, if the owner accepts it, you will sign the promise of sale. This most often includes a loan suspensive clause : if you have not been able to get the bank's agreement for a loan, you can cancel the sale without incurring penalties.
However, in order to avoid finding yourself in this uncomfortable situation, the ideal is to prepare your loan application well. Do not hesitate to create a file as soon as possible with the documents usually required by banking institutions, in particular to justify your income and the stability of your profile.
At this point too, market research is still useful because it lets you know how enthusiastic or reluctant banks are at the moment to lend money. This knowledge of the current atmosphere will help you modulate your strategic approach. In the same movement, it will increase your chances of getting a loan with the best possible conditions.
At HOME SELECT, we are used to working with banks and supporting our customers in their mortgage procedures. If necessary, we can also put you in contact with a broker who will provide you with valuable assistance, in administrative procedures as well as in negotiation.
4. Consider bridging loans
If you think Buy before you sell your current property, don't forget that you can take out a bridge loan to make up for the temporary absence of a contribution. Very concretely, it is an advance that can cover between 50 and 70% of the total value of the property, depending on the case.
On average, these loans last a few months: this can go up to 12 months in the majority of cases, 24 months in exceptional cases. Once you have sold your main residence, you can pay off this bridge loan and switch to the traditional loan (if you plan to take out one).
To be able to obtain this loan, you must have a reliable estimate of the value of your home. As a precaution, banks usually apply a discount, a kind of safety margin that avoids putting you in trouble if you cannot sell at the expected price.
At HOME SELECT, all our experts have a perfect command of the regulatory and practical aspects of bridge loans. They are in a position to guide you in your request to the bank and to provide you with information on this specific subject. They will assist you in all administrative procedures if you feel the need.
5. Know how to proceed to speed up the transaction
When you have to both sell and buy, you must know all the levers available to intervene on the temporality of the two actions, and make the timer play in your favor... Very concretely, in an ideal situation, it is entirely possible to leave your initial home to move directly into the new one, but this naturally requires a minimum of advance notice.
To reconcile the two transactions, you must first give yourself more time for the sale, by asking your purchaser if they can wait a few more weeks, for example. On the other hand, you must make arrangements with your seller so that he makes your future home accessible as soon as possible.
There are “long sales”, for which the signing of the authentic instrument is done after 6 months, compared to 3 usually. This can give you time to breathe and prepare for your move, but you should also know that these long sales can handicap you in tense areas, where buyers, on the other hand, want to go as quickly as possible. In addition, these long sales provide buyers with greater negotiation margin, which does not necessarily benefit you...
At HOME SELECT, we are used to managing purchase-sale projects in their entirety. Depending on the circumstances, the local market and your problems, we are in a position to provide you with appropriate advice, and above all to help you concretely in all your negotiation procedures.
6. Consider renting between selling and buying
If you are unable to negotiate the various deadlines as you would have liked with your purchaser and seller, another possibility is available to you and deserves to be studied: renting between the two purchases.
Many first-time buyers go through a transitional rental period to wait for the future property to be available, even though the old one is already sold. Of course, if you opt for this solution, you must have thought about it beforehand, as it involves additional costs. Not only will you have to pay rent, but you will also have to bear more moving expenses, since you will have to organize two.
If you rent a smaller unit in which you do not have enough space to take everything, it may be essential to take a box or storage space for the rest of your personal effects.
At HOME SELECT, our apartment hunters can find the perfect rental to help you rest between selling and buying. Our experts also remain available to guide you in renting a storage box if necessary for you.
7. Dare to start when you have found the ideal property
You have found the property that meets all your expectations, but you have not yet sold your current house/apartment? In this case, if you had rather thought of selling before buying, you may be destabilized and feel great doubts that will handicap you in the future.
Very concretely, do not forget that this project must above all serve your quality of life in the long term. Also, if you are sure that you have put your finger on the dream house, do not miss this chance for fear of having to manage too many unforeseen events. It is entirely possible to review your strategy at any time, to adapt to the events you are facing.
Experiencing a little discomfort and even stress in the moment will not necessarily be pleasant, but stay the course by telling yourself that what you are doing today is to feel perfectly at home in the long term.
At HOME SELECT, we often have to review our customers' strategies along the way. Our perfect mastery of real estate purchase regulations as well as the market allow us to constantly adapt to the changing context. We can support you in this upheaval of perspectives, to offer you the opportunity to experience it in the most serene way possible.
8. Know the usual deadlines to better organize
In order to avoid feeling overwhelmed, the ideal is to have a clear idea of the deadlines that are used in the field of real estate sales before you start. For example, on average, it takes three months between the signing of a promise of sale and that of the authentic act that validates the purchase at the notary.
Banks, on the other hand, have to study the files for a certain period of time before accepting or refusing a loan. At the same time, in particularly tense cities, you need to know how long it will take to offer an offer after a visit because, sometimes, when you lack responsiveness, you fall behind other buyers who were more active. Take all these details into consideration in order to have the best possible organization.
At HOME SELECT, we know how to be responsive when necessary, always to serve the interests of our customers. We know perfectly well the deadlines inherent in the various administrative procedures specific to the purchase and we are in a position to answer all your questions on this subject.
9. Choosing the most advantageous chronology
Selling before buying, buying before selling? As you have already understood in the previous paragraphs, the chronology of the purchase and sale depends mainly on the context. Given your requirements and the market in which you operate, you can theoretically have a fairly clear idea of the order in which you are going to proceed. We recommend that you think carefully before you start.
However, as you may have deduced, some opportunities may dispel the ideas you had previously thought of. In this sense, you also need to be able to be flexible, and understand that the choices you make today may be questioned in the face of an unexpected/unexpected discovery.
At HOME SELECT, we advise you on the best strategy to implement for your purchase and sale. We base our recommendations on an extremely precise knowledge of the market and on a detailed study of your particular needs. If necessary, we remain at your disposal to adapt the methodology to changes in perspective that may be necessary.
10. Know how to ask the right professionals to give yourself every chance of buying with peace of mind
A purchase-sale project cannot be improvised. It requires careful consideration beforehand and, above all, good support at each stage to avoid making mistakes. Whether it's finding the buyer for your property, negotiating in your favor to get the best possible price or even identifying the home that meets all your criteria on the market for your new life, many essential challenges coexist.
In order to ensure that your interests are maintained throughout this process, the best solution is to seek the advice of expert HOME SELECT real estate advisors. Our apartment hunters are used to helping their customers find their new home, but they can also supervise entire purchase-sale projects.
At HOME SELECT, our priority is to serve the interests of our buying customers. If they also have a property for sale, we can adapt our support in order to offer them the most comprehensive assistance possible in this life project.
