Benefits and drawbacks of selling your house before purchasing a new one

 It's normal for most people to sell their current home when purchasing a new one. As part of what is known as a 'property chain' in the real estate world, this helps them to raise funds for the new location.

 

If you have found yourself thinking if this is the right idea, then you need to weigh its advantages and drawbacks.

 

Disadvantages of selling a new home before you buy

 

- There's always a risk you won't find a new home easily, after selling your old one. This can put you in a position where you don't have good homes to purchase, but you need to rent for a certain period of time before you can sort them out. The extra cost may be very substantial.

 

- It's bad if prices are rising rapidly-selling before purchasing a new home in a market that continues to boost rates will leave you paying more. The new location will be less affordable by the time you sell your old house and plan all about buying a new one.

 

Benefits from selling until you purchase a new home

 

- You 're in a stronger buying position-usually sellers are more in favour of people with cash in the bank, as well as a pre-approved mortgage. In other words, the seller will approve of you more than the prospect of entering a chain, in which case their property for sale in Spain depends on a person you need to find to purchase your present home.

 

- Gazumping chances are lower-putting a good offer means the buyer will probably take it, rather than bothering to enter a chain.

 

- You stay in control-you don't have to make a quick sale, so you don't have to accept cheap bids. This will also keep you in a better-negotiating position.

 

- It's possible to get a better price-if you find a seller ready to move quickly, you can get a good price for a new home.

 

- You know your exact budget-getting the money from your previous home gives you an insight into how much you can afford on the new. On your existing home, you won't depend on getting a certain price, allowing for more objective decisions.

 

 

With all that has been said, it's important to keep some critical tips that experts share on the subject:

-If you are selling a new home before you buy it, you have to make sure that all the specifics are taken care of. The hypothecary is a big one.

 

- Keep an eye on the property market, should the perfect option arise. You should use it well, because you have time.

 

- Get your mortgage always pre-approved. It will make you more desirable in seller 's eyes.

 

- Slow down the sale process if you can so you have enough time to purchase a new property in Spain. You should negotiate to a longer period of time between contract exchange and completion, as well as between an offer being negotiated and contract exchange.