If you are already an owner and you wish to acquire a new property, you are then called a “second buyer”. Several reasons may push you to want to sell or rent your apartment to buy: having more space to expand the family, for example, moving to another city, investing in a new property, etc.
As an existing owner, if you want to buy another home, you must first ask yourself the following question: Do you want to sell or rent your current home? This answer is decisive for the financing of your new purchase. Next, you need to calculate your budget and your borrowing capacity. You should know that second-time buyers are generally favored by banks.
As a general rule, people who already own homes have larger contributions than first-time buyers, which allows loans at more attractive rates. Many real estate loan offers are also exclusively dedicated to households that already own homes wishing to make a rental investment or buy another residence.
If you decide to rent your house to finance the purchase of a new one, the latter will be considered a second home. A point to take into consideration before you start renting! In both cases you need an advisor and real estate agent and the best option is Buy BHM.
As a homeowner, you can also consider renting out your current home to finance the purchase of your new one. You will thus receive rent each month, here called occupancy compensation, for a period defined by the contract (maximum 3 years), and transfer the property to the tenant at the end of the contract.
To sell your property, just like to find the house you like, it can be interesting to use a real estate agency like Buy BHM. Especially if you are in a hurry! To help you know which agency to turn to, we advise you not to stop in the first place but to compare them. Below you will find our guide to choosing the real estate agency that will support you in your project.
How To Coordinate The Signing Of The Sale And The Purchase On The Same Day?
Real estate sales and purchases on the same day are entirely possible; it’s even the ideal situation! You can therefore plan the signatures for the sale of your property and the purchase of your new home on the same day, at the notary office.
Your notary can assist you and help you coordinate these two signatures, in conjunction with other notaries, real estate agents, and other parties involved in the transactions. The best solution is to schedule the signing of the sales agreement for your house in the morning and to sign the purchase of the other property in the afternoon.
In principle, you will obtain the keys to your new residence immediately after signing. So you can make your move on the same day. However, the entry into use of the property may be postponed to a later date. This decision is made by mutual agreement of both parties. You will logically know in advance of the day of handing over the keys.
Sell Before Buying, Why?
Selling your house to buy another is common in the real estate market. In this case, it is recommended to sell before buying, but for what reasons? Selling than buying a house is often more secure, but this order still has some disadvantages that it is important to list. Here is a summary table of the positive and negative points of selling before buying:
Advantages:
- Be reassured and not have to assume the costs of two homes;
- Know the amount available for the purchase;
- Take the time to make the sale in the best conditions;
- Facilitate the purchase offer on the new property (if there are no conditions of sale for your current property).
Disadvantages:
- Obligation to spend a few months renting if the sale is made too early. May incur additional moving costs;
- The search for a new property can be long.
In any case, our advice is not to rush. The procedures are often quite long and involve, having a clear real estate project so as not to suffer significant losses of money. Furthermore, if you plan to sell your house before buying, don’t delay in starting the process, and hire Buy BHM via call (205) 273-6638.
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