The fact of already owning a property is a definite advantage to buy a new property. Put it on sale before buying a new one lets you know what budget will be available for the purchase of the next residence. Indeed, even when the property has been estimated by a professional at a certain price, it is common to see sales come at a lower price. In addition, sales do not always happen in the first days, and the temptation to lower the price to sell faster may stall the purchase project. From the Rochester MI realtor you can have the best deals now.
The Great Advances
By knowing in advance the amount of the available budget, it will be easier to quickly negotiate a new mortgage for the purchase of a larger and more expensive property. This saves time-wasting on unnecessary visits to unsuitable goods.
- After signing the promise or the sales agreement, the seller has two or three months during which he can stay on the premises. This can be enough to find a new property and settle there. It is possible to negotiate with the buyer an additional period, to ensure the transition from one property to another. If this is not enough, it may be useful to take out a bridge loan to avoid a search for temporary leasing and a double-move.
Buy before you sell?
Buying a new property before selling your home is the solution to avoid being on the street for a few weeks or months. This solution also makes it possible not to miss an opportunity that presents itself. But it is also perfect for the most demanding, looking for the ideal property.
It is important to be able to quickly benefit from a loan on all of the new property, with a “relay” option on the sale of the current property. By granting a bridge loan, the bank aggregates borrowed capital over a limited period of time to sell the property presented. But it is also perfect for the most demanding, looking for the ideal property.
Traps to avoid
In both cases, there are some precautions to take to avoid being trapped. If the choice is to buy before selling, it is important not to overestimate the value of the property sold. The risk would then be to borrow more than expected to acquire the new property. To avoid this kind of problem, it is useful to have your property valued by one or two professionals, real estate agents and notaries. It should be added that a properly evaluated property will sell more easily.
In the event that it is the sale of the property before the acquisition is preferred, it is important to know that the compromise or the promise of sale does not constitute in any case a final decision. Only the deed of sale, signed before a notary, concludes the sale. Also, it is prudent not to rush, as soon as the signing of the sales agreement, to choose a property. In the event that the new property is found before the sale is finally signed, it would be wise to negotiate a clause suspending the purchase for sale of the property in progress.