If you already own a home and want to swap it for a new one, usually you have to go through a long and complicated process. First you need to sell your current property, acquire the money, find a place to live between your homes, and then finalize the purchase of the new property. However, there is a much easier and more efficient way to switch homes – you can sell and buy your property simultaneously. Of course, this move requires some skills and a lot of business savvy, but with our help this process will go as smoothly as possible.
1. Plan your accommodation
From a financial standpoint, the easiest thing to do is to sell your property and buy new one after some time. But where are you and your family going to live while the new property is on its way? Luckily, you can try a scheme that is now very popular with Nigerian real estate buyers: you set a lower price for your property in an exchange for a right to continue living in the house you sold for 2 or 3 months until you’re able to move out. This will give you a lot of extra time to find your perfect home, while the new owners of your old property can enjoy the affordable price.
Another option is for you to sell the house at its normal price, but continue to live in it for several months, paying the new owners a rent. This is a preferable solution for many Nigerian buyers and it clearly benefits both parties.
2. Research your financial options
The situation where you can sell your old home and purchase a new one within several days is ideal, but it doesn’t always happen the way you want it to, so you need to find other solutions in case they are needed. One of the most popular financial solutions for property buyers is a bridge loan – a financing plan that allows you to take a substantial short-term loan to pay for your new home and repay it at once after your original property is sold.
For everything to go smoothly, you need to prepare for this loan in advance: make sure your new home is ready to be sold, and the buyers of your old one are prepared to give you the money as soon as possible.
3. Investigate the market
Each real estate market in Nigeria is different; for example, property in Lagos is largely different from property in Abuja. This is why you need to plan your moves accordingly. Start by researching the prices, looking at various options in the location you find the most appealing. Research both the offers in your current location and in the location you’re planning to live in – this way you’ll be able to both set a budget for your future home and choose a fair price for your current one.
If you don’t think you’re skilled enough to do all of the planning yourself, perhaps you need a real estate agent, who will take you through the complicated process of buying and selling property at the same time. And don’t let the research phase to go on for too long – otherwise you risk losing money in case the prices in the market go up or down.
4. Keep a tight schedule
If you want the selling and purchasing process to be as smooth as possible, it’s all about timing. Not only do you need to find a perfect time on the market, but you also need to combine those two actions and place them as closely as you can to avoid losing more time or money. Of course, it’s not always possible, and often those situations go out of hand, but at least you should pay due diligence to the processes that rely on you directly – namely, getting your finances in check, preparing the necessary paperwork, and arranging the transfer of your belongings from one property to another without wasting anyone’s time.
5. Don’t act out of fear
Since buying and selling property is a rather stressful time, you are prone to making wrong decisions. One of the biggest mistakes you can make is successfully selling your old home, but not finding new property on time and having to settle for the first home that meets your minimal requirements. This move can result in an overall disappointment with your new home that can make you sad for years. So, unless you have literally nowhere to live, don’t make any rushed decisions under stress, and you’ll be fine!