Selling a house to buy another one: how can you do it?

Do you know where you want to live?

If this is something you finally need to do, you should choose the new location. Maybe you need to move to another neighbourhood and stay in the same city, or maybe the situation forces you to look for a city in the same or another community. Find out about that new location and make sure that it it has everything you need distance to work, services nearby (supermarkets, libraries, hospitals...), good communication with the rest of the city.

You can look for a new home at a later date. For the moment, it is enough to evaluate the area.

Study the market

The next step you should take is to assess whether it is a good time to buy or sell. To do this, you can evaluate the general evolution of the sales made in the last months in our country to see if there is a lot of demand, what prices are being handled, etc. You can find this information in our latest market report market report or in the portal of the National Institute of Statistics.

You can also check the demand for housing in both the current and future areas. In our report we collect the evolution in the real estate market in our country during the last year and the price per square metre in the districts of the main cities. It is a good starting point to ask yourself the relationship between supply and demand, what is the average price in your current area and the one you want to move to, among others.
With this information, you will be able to have a valuation of the price at which you can sell and how much you could pay for the new one.

Carry out an appraisal of your current home

Next, it is important to to carry out an appraisal of the property it will help to determine a realistic price and determine the profit you can make on the sale.

It also offers security during marketing, as it will be a back-up for possible negotiations.

Prepare your house and put it up for sale

Now that you have a valuation done, it is time to put it on the market. The market study that you have done previously will give you clues about how much a house with similar characteristics to yours costs in your area, and you will be able to determine a selling price.

To do this, it is important that you take note of these tips:

• Prepare your home for sale: Home Staging is a very effective concept that consists of preparing and presenting a property for sale, enhancing its features and attracting potential buyers. In this way, it shows the maximum potential and captures the attention of potential buyers.

• It relies on the services of a real estate agency with experience in the sector, as they will advise you throughout the whole procedure and know how to get the most out of your property.

• Analyse market responses: If you don't have any contacts, it may be because the price is too high or the advert is not very attractive. In this case, you will have to readjust the price and lower it to capture the attention of interested parties

Consider the costs of buying and selling and set a budget for the purchase

Both buying and selling involve a series of associated costs that you should take into account in order to know how much the transaction may cost and what budget you can manage for the purchase.

It is important that, when you take the plunge, you set a realistic realistic budget taking into account the taxes we have mentioned and other costs such as moving or furniture. It is important to have a margin for unforeseen events.

Find your new home

Now that you know how much you can afford to spend on the purchase, it's time to look for a property in your desired area that fits the price range you've set.

It is important to keep in mind the type of house you want to buy and its location. If you have children, you may want to look near a good school. If you are a remote worker, you may want to consider natural surroundings.

Negotiate the terms of sale and sign the earnest money contract

Now that your property is for sale and is listed on the estate agent's search engine, you will receive a viewing request.

If that ideal buyer has already turned up, you need to make sure to negotiate the terms of the salewith both the real estate agent and the potential buyer. Determine who is responsible for which expenses.

In case you haven't found the one you want yet, you can take the opportunity to talk to the potential buyer to establish a plan on how to proceed in that case.

This is also the time for the signing of the earnest money contract in the case of both sale and purchase. This is a document that must be signed and guarantees the sale and purchase within 2 to 6 months.

Close the sale and purchase

By following these steps, you will be able to close both operations almost simultaneously.

Establish a moving plan

Finally, you will need to establish a detailed moving plan, organising your belongings and making arrangements for the transportation and storage of furniture.

Now you're ready: welcome to your new home.

Frequently asked questions about the selling before buying procedure

Here are some of the most common questions that may arise during this procedure.
what happens with the IRPF?

If you sell to buy, you will not have to pay IRPF, which will save you tax. This is because it is considered a reinvestment, as the sale finances the purchase.

However, at the time of the sale, you must give notice of your intention to buy, which must be made within a period of less than two years.
The property I want to sell has a mortgage

In the event that the property has a mortgage debt, you can use the money from the sale to pay off the debt or apply for a bridging mortgage (a financing option designed specifically for these cases). Whatever the decision, you should discuss it with the bank with which the mortgage is signed.

It is important that you remove the mortgage charge from the Land Registry.

What happens if the ideal buyer has not appeared or I have not found the perfect property?

It may happen that the perfect buyer has appeared, but not the property, or the other way round, which is a setback.

It is important that the procedure is is important that the procedure is reflected in the earnest money contract, as it will serve as a guaranteeit is important that the procedure is reflected in the earnest money contract, as it will serve as a guarantee to proceed with the sale and purchase within a certain period of time.

In the event that you do not find your new home within the period indicated in the earnest money contract, you can request an extension from the buyer, although the buyer is under no obligation to accept it.

If the home has turned up, but not the buyer, you can negotiate a new date with the seller so that the situation can be resolved. But the most effective way is for you to readjust the selling price.

Do you want to sell your house to buy another one? Get in touch with us. We will find the ideal buyer for your property and open the doors to your new home.