Commercial & Residential Properties in BC & Alberta

Yarmoloy Group: Consolidating the Procedure of Selling a House

One of the reasons why we want or are forced to selling a house is because we need to buy another property at the same time.

Selling a house and buying another is the order of the day. To achieve this successfully, all you need is a little organization and the most professional real estate advice.

Sell ​​one house and buy another

It is best to organize yourself and, of course, manage the purchase and sale transactions in parts. The first thing is to sell.

Why sell a property first to buy another? For obvious reasons, having liquidity will make it easier to buy a home, meet the costs of the transaction, or obtain the necessary mortgage.

Although that is the ideal scenario, it is not always possible to do both moves in the desired order and we are forced to do them almost evenly.

It is a common operation, but it is not exempt from possible complications. Knowing the risks will make it easier to sell a house and buy another efficiently.

The approval of the bank

The economic aspect is one of the fundamental pillars of this process. If we do not have enough liquidity and we need the support of the bank, we may find that the transaction does not convince our bank.

Banking risk entails a series of analyzes and assessments by the entity, which can have two consequences.

On the one hand, there may be a refusal to endorse the transaction.

On the other hand, there is a delay in the execution, which can lead to the loss of the operation if the seller or the buyer of one of the two houses is not willing to wait or has other alternatives.

Selling a house and buying another: how to do it step by step

To organize yourself well to try to manage both operations at the same time, it is best to follow these steps:

1. Real estate market analysis

Research the market. Analyze if both operations are viable and how you are interested in doing them. Aspects such as the evolution in the price of housing, the suitability of the moment of sale, or the relationship between supply and demand are points that you must take into account.

Although the ideal is to sell your home when demand exceeds supply, it is not always possible for both things to coincide over time. To eliminate the negative points, do a very thorough real estate market research.

Do not forget aspects such as the type of properties most in demand, the average sale time, the bank requirements for mortgages, the value of the Euribor, or the average price of the home in the area you want to buy.

Do not forget to study the development plan of the area where you want to acquire a new home. In this way, you ensure that the infrastructure and services will always grow and the value of your home will increase.

2. Evaluate the extra expenses

Selling a house and buying another implies a significant tax burden.

The banking entities will endorse the transaction if they consider it profitable, so guarantees, expert reports, and studies that justify sufficient guarantees will be necessary.

Calculate the expenses, income, payments, and everything economic that implies selling a house and buying another to cover all the operations. Ideally, the new mortgage should cover the value of the home and the expenses of the transactions, as well as possible reforms and possible unforeseen events.

Remember that, in addition to expenses, you can also opt for exceptions in your favor. Selling a house and buying another is contemplated as an exemption from personal income tax as long as the money from the sale is reinvested again in the purchase of a habitual residence.

3. Design an organization plan

Be realistic and manage your time effectively. Planning the times of both transactions is very important, whether you are looking for them to flow in a coordinated manner or if you can sell your home first to opt to buy another house later.

Properly assess the deadlines and their inconveniences. It is important to determine times such as the time needed to sign the deed of sale, the time needed to look for the new house, or the margin necessary for the appraisal and valuation by the bank.

To all this, we must add the inconveniences and unforeseen events. For example, to shield the sale of your home if you still do not have a future property, you can resort to a deposit contract. This legal figure commits the transaction during an agreed date to which both parties must adhere.

4. Real estate agencies to sell a house and buy another

To speed up the process of buying and selling homes, a real estate agency is the best solution. The intervention of a real estate company can not only speed up the process but also optimize the procedures so that they are carried out in the most efficient way.

You can publish your home on real estate portals, put up posters or spread the characteristics of the property among your closest circle, but the intervention of specialists in real estate management will be the best way to obtain the results you want.


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