How to Sell and Buy a Home at the Same Time

Selling an apartment and immediately purchasing another is entirely feasible, but it demands meticulous planning and precise coordination of each step. To make the process seamless, it's essential to manage it effectively, consider legal and financial elements, and time everything correctly. While it's advisable to rely on a professional, you can handle it yourself if you stick to a structured plan. Here's how you can achieve it.

How to Sell and Buy a Home at the Same Time

Step 1: Evaluate your finances Begin by determining the value of your current apartment. Have the property you wish to sell appraised and put it on the market. If circumstances allow, use the proceeds from the sale as a down payment for a new home. In such cases, it is wise to draft a preliminary purchase agreement with an extended timeframe to cover everything.

Step 2: Plan the sale and purchase From a legal standpoint, simultaneously selling and buying real estate is completely permissible and fairly typical. The trick is to synchronize both processes to prevent time gaps or financial setbacks. Focus on the sequence of actions and the status of your mortgage, if applicable.

If your first home was purchased with tax incentives (like a "first home" incentive), you must buy a new one within a year after selling to retain these benefits.

Practical steps:

1. Selling your current property You can either work with a realtor or find buyers on your own. It is advisable to allow ample time for the transaction—approximately six months before finalizing the purchase and sale agreement (rogito). This provides a buffer to find a new residence. Alternatively, negotiate with the buyer for a delayed key transfer.
2. Search for new housing Simultaneously, search for a suitable apartment or house, establishing a realistic budget. If you quickly find a suitable option, you can agree on a move-in date that allows time for renovations, or arrange a deal with a conditional stipulation (e.g., the purchase occurs only after selling your current home). It's advisable to formalize such agreements with professional assistance.
3. Synchronizing deadlines The most challenging part is coordinating the transfer of keys and closing deals. It's crucial to precisely align dates with the notary to ensure contracts are signed and funds are transferred without delay, guaranteeing adequate funds for both transactions.

Working with one real estate company

Utilizing a single real estate company for both selling and buying can simplify the process. An agent coordinating both transactions can minimize confusion risks and provide tailored assistance. Opt for a reputable company that can evaluate your property, identify a viable purchase option, and efficiently manage the entire process.

What to do if you have a mortgage

If your property has an existing mortgage, you have several options:

• Pay off your mortgage early using the sales proceeds. This is often the preferred choice.
• Transfer the mortgage to the buyer (known as accollo), if feasible.
• Apply for a "bridge" loan to cover the interim period between transactions.
• Transfer a mortgage to your new home by changing the collateral from one property to another.

In all scenarios, a notary's involvement and bank approval are necessary to accurately calculate remaining debt.

How to sell and buy a home without a realtor

It is possible to sell and buy homes without an agency, but it requires more effort. Even then, securing a notary to draft a purchase and sale agreement (rogito) is essential for officially transferring ownership.

What needs to be done:

• Draw up a preliminary agreement (compromise) binding both parties to the transaction.
• Prepare documents: energy certificate (APE), cadastral documents, and other necessary paperwork.
• The buyer selects a notary to formalize the transaction.

How much time do you have to sell your "first home"?

If you have benefited from a "first home" purchase advantage, it is crucial to sell your old apartment and acquire a new one within two years (as stipulated by the 2024 Budget Law, effective from January 1, 2025). This regulation also applies to transactions completed in 2024.

How to "Reserve" a New Home Without Selling Your Old One

To "reserve" a new apartment before selling your current one, you can:

• Make a conditional offer to purchase, contingent on the successful sale of your home. A deposit is made and retained by the realtor until the preliminary agreement is finalized.
• Specify a validity period in the offer (e.g., 3 months). If the property isn't sold during this time, the deposit is refunded and the deal is canceled.
• Drawing up a compromise is a preliminary agreement recording the parties' intentions before completing all formalities.

How much does it cost to sell and buy a home?

Buyer's expenses:

• Registration tax: 2% of the cadastral value for a "first home", 9% for a "second home" (minimum 1000 euros).
• Mortgage tax: 50 euros.
• Cadastral tax: 50 euros.
• VAT (if buying from a developer): 4% for "first home", 10% for "second home".
• Notary services: 1–2% of the property's value.
• Realtor commission: 2–5% of the sale price (negotiable).

Seller's expenses:

• Realtor commission: 2–4% of the sales price plus VAT.
• Capital Gains Tax: If selling within 5 years of purchase.
• Energy performance certificate (APE): around 200 euros.
• Notary fees: if mortgage removal is required.

Conclusion

Buying and selling a home simultaneously is complex but achievable. The key is to meticulously plan every step, manage time wisely, and enlist professional support if needed. This approach helps minimize unnecessary costs and stress.