Buying and selling at the same time: Your guide to a seamless transaction

Market analysis: the right timing for buying and selling

The current situation on the property market has a significant influence on how easy or difficult it is to buy and sell at the same time. Depending on the market situation, the time frame for selling or looking for a new property can vary considerably.

Buyer’s market vs. seller’s market

Buyer’s market: There are more properties on offer than potential buyers.
Buying a new home is easier, but selling can take longer.
Sellers are more willing to accept offers with a sale clause that ties the purchase to the successful sale of the previous property.

Sellers’ market: There are more prospective buyers than available properties.
Houses sell quickly, but it can be challenging to find a new property.
A leaseback agreement after the sale can buy time to find a new property

Strategies depending on the market situation

Choose the right partner

Buying and selling a property at the same time requires experience and negotiating skills. An experienced estate agent can:

Provide a realistic assessment of the market value of the current property.
Develop strategies for buying and selling.
Set the optimum price for the sale to enable the desired timetable.
Manage negotiation processes efficiently and avoid pitfalls

Financial planning: What is feasible?

A thorough financial analysis will help determine the best strategy for buying and selling. This includes:

• Estimating the likely sale price of the current property.
• Calculating the available equity.
• Examining financing options for the purchase.

Important financial aspects

• Calculating equity: How much is left after deducting the outstanding mortgage from the market value of the property?
• Check liquidity: Can the new property be financed without the immediate sale of the old one?
• Check financing options: Banks offer various loan solutions such as bridging loans or mortgage increases.

Buy first, then sell: Advantages and disadvantages

Buying a new property before selling the current one can offer advantages, but requires financial flexibility.

Possible approaches

• Purchase offer with conditional sale: The purchase only becomes binding once the existing property has been sold (particularly successful in buyers’ markets).
• Extended purchase: If the sale seems certain, a longer period for the property purchase can be agreed.
• A mortgage increase makes it possible to use the equity in the existing property for the new purchase.
• Bridging loan: A short-term loan covers the financing gap until the sale proceeds are available.
• Renting out the old property: If possible, the existing property can be rented out temporarily to create financial flexibility.

Advantages of buying before selling

• ✔ Direct relocation without an interim solution.
• ✔ No double storage or rental costs for a temporary solution.
• ✔ More time for property search without pressure.

Disadvantages of buying before selling

• ✘ Risk of prolonged double financing burden.
• ✘ Pressure to sell can lead to a lower selling price.
• ✘ Less attractive offers for sellers in the case of a purchase with a sales condition.

Sell first, then buy: Advantages and disadvantages

If you sell first, you have a secure financial basis for the purchase, but may need a temporary solution.

Possible approaches

• Purchase offer with closing condition: The purchase is not finalised until the current property is sold.
• Temporary rental solution: An interim rental or furnished temporary accommodation can help to gain time for the property search.
• Lease-back agreement: The buyer of the old property grants temporary rental use after the sale.

Advantages of selling before buying

• ✔ Clear financial planning with secured equity.
• ✔ More room for negotiation for the new purchase without time pressure.
• ✔ No risk of double mortgages.

Disadvantages of selling before buying

• ✘ Possible need for a temporary housing solution.
• ✘ Additional relocation and storage costs.

Conclusion: choose the right strategy

Buying and selling a property at the same time can be challenging, but with the right planning and support, the process can be successful.

Important points at a glance

• Market analysis: buyer’s or seller’s market influences the best approach.
  Partner selection: An experienced broker can coordinate the process efficiently.
• Financial planning: Check equity and financing options.
• Strategic decision: Weighing up whether to sell or buy first.

With a well thought-out approach and close coordination with our experts, the transition to the new property can be smooth and as stress-free as possible