Second real estate purchase: should I sell or buy first ?

You are already a homeowner, and you wish to buy another one. Selling or buying first, there is reason to hesitate ! Each solution has advantages and disadvantages, both in terms of organisation and financing. Here are our tips to help you make your choice.

Sell first to know your funding

At first glance, selling first offers more security. Indeed, it allows you to approach your purchase with serenity, by having a precise idea of your budget: the old home sold, you know how much you can rely on, and how much you will eventually be able to borrow. 

This situation requires you to rent a temporary home, which implies several additional expenses (such as renting a storage unit for example) but also the constraints of two moves close together. You can nevertheless negotiate a long sale with your buyer, if he is not in a hurry.

Be careful, this situation should not lead you to lower the price of your home in the hope of selling it more quickly. The sale of a home is often done to buy a larger and therefore more expensive property, which would penalize your purchase. Keeping your budget in line with the prices in the area is an asset for the continuation of your project.

Buy first & don't miss out on opportunities

Buying first is often due to a crush. Be aware that it is quite possible to buy a home before selling the old one. In this situation, the main question will concern financing.

Although it is possible to make the sale and purchase of the two homes coincide, you must be careful to avoid any situation that might arise. Even if, in general, a property valued at the right price is quickly found in the Chamonix area, the possibility of selling it after two or three months should not be ruled out.

In this situation, you should consider a purchase and resale loan. This type of bridging loan allows you to finance your new purchase while waiting to sell your old one. 

Precautions to take when buying a second home

There are solutions to make your home stand out from other properties on the market and find a buyer more quickly. You can opt for home staging, or some small, inexpensive work (painting, changing doors and windows, etc.). Finally, the correct evaluation of the selling price remains a determining factor for a successful sale.

As you will have understood, there is no perfect solution in the end. It all depends on your personal situation, your wishes and the state of the market. If you are in this situation, do not hesitate to contact our advisers who will be able to guide you towards the most suitable solutions.