The condo is often perceived as a first home before buying a house. However, in some cases, the steps unfold otherwise. Following changes in the lifestyle or needs of the occupants, sometimes the opposite happens instead. In this case, what should you know to initiate the procedures associated with this type of transition ?
Selling a House and Buying a Condo : The Important Information
You’ve decided to sell your house to live in a condo. As with all sorts of real estate transactions, there are several things that you must take into account and think about from the very first steps.
The Down Payment for the Condo: How to Determine It ?
The financial considerations are among the first aspects to take into account. You need to think quickly about the down payment needed to purchase the condo. Will this only be available once the house is sold? If that’s the case, you’ll have to plan out the sequence of transactions so that you’ll have enough cash at the right time. Then, to calculate the amount required for the down payment, you’ll have to know the total purchase price of the condo. Once you have that number, you can do the math.
For a property worth less than $500,000, the minimum down payment is 5% of the purchase price. If the price of the condo is between $500,000 and $999,999, you’ll have to calculate 5% for the first $500,000 and 10% for the rest. Finally, for a property valued at over $1,000,000, the minimum down payment is 10%. You should know, however, that these figures may vary if you have a bad credit rating or if you’re self-employed. Several financing options are available for the down payment, so we highly recommend speaking to your financial institution to learn more.
Anticipate the Delays
Here too, it’s a matter of planning out the process well in order to take the potential delays that may occur during this transition period into account. When it comes to selling one property to buy another, the delays can be hard to anticipate, but if you’ve taken this aspect into account during your planning, everything should turn out for the best. For example, if the house is sold before the purchase of the condo is finalized, you’ll need to have a plan B for housing and storing items. Delays may also occur during several stages, including at the notary, at the bank, and of course, with the other people involved in the transaction.
How to Maximize Your ROI (Return on Investment)
As the goal is not to suffer losses, and even to make a profit, you should prioritize all the possible ways to maximize your ROI. First, this concerns the house that you’re putting up for sale. Is it in good condition? Is it properly showcased? To ensure a good profit, you’ll have to take the time to do things right.
In addition, take the time to make sure that the price you’re asking for is reasonable and reflective of the current market. That way, you’ll make it easier to sell, without having to go through negotiations that wouldn’t work out in your interest.
Find a Condo That Meets Your Needs
Finally, this last but not least point is certainly one of the most important. These days, there are some very attractive condos on the market offering many services and amenities geared toward the occupants’ quality of life. However, you should make sure that you’ve really thought about what you’re looking for and find a home that will suit you perfectly, because condo life is different from life in a house.
By following these steps, you’ll make sure that you’re starting the transition off on the right foot and ensuring that the transactions surrounding it are favourable to you.