Is it better to sell first before buying or buy before selling? An eternal question that comes up when you have to move. If you buy before you sell and before you start a bridging loan, be sure to sell quickly so that you don’t end up with two monthly payments on your back. But “If you sell your property first you may have to rent out and manage two moves before finding your favorite property. Today it is possible to buy one property before having sold the other thanks to the purchase-resale loan. Most banking partners offer this very advantageous offer which will allow you to sell with confidence.
This is a new loan that will integrate the bridging loan and buy back the capital owed on your previous property. So you have two years to peacefully sell your property and once the property is sold, you repay it in advance and without penalty for the corresponding amount. The loan continues to run for the remaining term between 20 and 25 years. Think of this solution very different from the classic bridge loan since you have only one monthly payment over a longer period with the ability to wait two years before selling your property.
Indeed, this bridging loan formula is less restrictive than the traditional bridging loan and gives you time to sell your property in 24 months without the risk of ending up with two monthly payments on your back. Banks remain vigilant and do not offer these formulas in areas where the property market is relaxed, that is to say where supply exceeds demand (Editor’s note).
Another possibility to avoid the classic relay loan box
It is now possible, at least in bank, to sell your property to Homeloop, an express real estate agency. The latter will buy your property back in 48 hours flat. Convenient for those who want to escape the traditional bridging loan, for those who are transferred, expatriates, or those who do not want to waste time with buyers who are refused a loan or who exercise their right of withdrawal.
Homeloop is based on the American Opendoor model, which is a hit in the United States. “A unicorn valued at nearly two billion USD according to the latest information circulating in the market” (one billion a year ago).
How long does Homeloop take to make a binding purchase offer to the seller owner?
Today, Homeloop is able to make a firm offer to purchase in 24 or 48 hours after the visit of a real estate expert. We make offers at market price with a discount slightly higher than the fees of a conventional agency but which allow to fully secure the sales process.
A number of our customers prefer to sell to Homeloop rather than going through a bridging loan which has an anxiety-inducing side: you are buying your new house without having sold your old property. The bank will finance you only a percentage of the value of your property and in return you have to pay interest. In addition, she asks you for a mortgage, which is not necessarily reassuring. In fact, if you find yourself unable to pay the two monthly credit payments, the bank may seize your property.
Other clients transferred abroad ask us to quickly redeem their property before their departure. Other sellers appeal to Homeloop after having experienced a withdrawal from a potential buyer.
What do you guarantee to the seller?
The sale is completely secure. Homeloop cannot retract unlike an individual. We offer them an extremely flexible sales calendar that adapts to their needs.
Note that Homeloop can never turn against a seller for reasons of vice-concealment for example because we are real estate professionals and we buy with full knowledge of the facts. This is the reason why we carry out a fairly extensive audit of the property via the expertise carried out upstream of our purchase offer.
It is therefore now possible to sell your apartment as quickly as your car. Without having to embark on a risky bridging loan.