This is an annoying question, but here’s how to make the right decision: Transfers for work, new members in the family or, just, the desire to change house are some prominent reasons. It is a very common operation that, in fact, has grown in the last year.
However, the fact that second-hand homes are bought and sold every day does not mean that the procedures are as simple as placing an advertisement, finding a buyer, collecting money, giving them the keys and, with that, buying another house. On the contrary, the house buying is a complicated process that can open questions that will be important to solve.
Sell a mortgaged house and buy another
Sell house fast to the bank to buy another can be an idea that is truncated, given the stock of houses held by the entities. However, keep in mind that the bank will be an actor in the process, especially if you are going to sell a mortgaged house and buy another.
To get rid of your home, you cannot do it if you weigh a mortgage, so you should consider amortizing it or subrogate it to whoever purchases the property, an option that will also be considered as a buyer, along with subscribing a new mortgage or exploring other alternatives. Thus, when you think about selling and buying a house at the same time, you can consult the bank about your bridge mortgages to pay for the new home and include the remaining loan from the one to be sold.
Collection of documents for the sale
Before the sale, it will be necessary to collect a lot of documents including the pending debt certificate stands out if the mortgage has not been paid, the deed of ownership and a simple note.
This note, which is obtained in the Property Registry, is essential because it offers information such as the ownership of the home or whether it is free of charges. In this sense, the buyer must show that he is up to date with the Real Estate Tax and with the community of owners.
Expenses and taxes
Sales and purchases derive expenses, for example, notarial deed, after which the property must be registered in the Registry. To this is added the payment of taxes such as the ITP for the buyer, or the surplus-value, which will be paid by the seller, who will have to declare the benefit of the transaction.
- It is necessary to understand that if the profits are destined to buy another house or to its rehabilitation, they will enjoy tax exemptions for reinvestment of habitual residence.
- Selling your property first has the benefit of knowing how much you can get to buy the next one.
- Also, an unconditional offer to purchase may seem more attractive to some sellers.
- Finally, agreeing with his buyer on a date of possession, the owner will know when he will move. This information will make his life easier when it comes time to submit an offer to purchase.
What if I find the house of my dream?
Someone could indeed find the house of his dreams and decide to make an offer to buy my house without having sold his current property. If your offer to purchase is made without the condition of sale, it must still raise the necessary funds to acquire the new property. This requires cash or an arrangement with a financial institution.
This option is not feasible for everyone.