
Building and selling at the same time? Here's what you need to bear in mind!
Those who decide to build their own home usually focus all their attention on it. After all, building a house is a lengthy and complicated process. Things rarely go according to plan. Home builders often have to wait longer than expected to move in and end up paying more than they initially calculated. Before selling your old property, you should definitely consider these potential complications.
If you don't approach the sale of your house professionally, you may find it difficult to find a buyer or end up selling below market value. This can lead to problems financing your new home, especially if you still have a mortgage on your old property. The sale and new construction should therefore be well coordinated. This can be solved financially with bridge financing. Banks offer this to customers who theoretically have the necessary equity but cannot currently access it. The maximum financing period is usually 24 months. The old property serves as collateral for the bank.
However, it is often difficult to pay off both the new and the old loan at the same time. Many owners cannot manage this with their monthly income. So is it better to sell the old property first and then build? In such a case, the question arises: Where should we live until the new building is finished?
Ideally, you can come to an agreement with the buyers of your property: The move will only take place when you move into the new property and the buyer pays an initial deposit upon signing the purchase agreement.
However, these criteria make the search for the right buyer even more difficult. It is therefore advisable to consult a professional who has extensive experience in negotiations. The support of a real estate agent also offers other advantages. They take care of most of the work involved in the sale, evaluate your property using certified methods, and can thus help you sell at a fair price.
Even if you are selling your property shortly before the completion of your new build, it is advisable to stipulate in the purchase agreement that you will not move out until your new house is ready. This is because complications often arise shortly before completion, which can delay the move. In such cases, it is better to be on the safe side so that you are not left without a roof over your head.
Would you like to sell your old property without stress and are looking for professional support? Contact us now for a no-obligation consultation.
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