The definition of the term related purchase and sale refers to situations where clients find themselves in the role of both the seller and the buyer of real estate at the same time. Namely, it is extremely common that when solving a housing issue, the client has to sell his property, in which he usually lives, in order to finance the purchase of another property from the part of the funds received from this sale. In general, the buying and selling process is stressful in itself, and the situation of uncertainty described above causes additional stress in customers and they generally do not know where to start. In addition to having to keep a close eye on all the usual things with each purchase sale ( real estate documentation, credit conditions, real estate condition, evangelical additional investments, etc.), in the case of related purchases and sales, the challenges are even more pronounced.
So, where to start? I would say.. from experts. Engage real estate agency who is the only expert to guide you through this whole process and who is the only one who has the resources and knowledge to “cover” all the challenges that may await you along the way.
However, if you still decide to go it alone, below we give you a couple of essential and useful tips;
- get to know the situation in the real estate market and assess whether the same goes in favor of buyers or sellers, more precisely it is essential to assess whether it will be “easier” to buy or sell the property.
- guided by the above knowledge, make a strategy and either go on a tour of the property you want to buy or if the situation on the market is reversed, start the process of selling your property. Note; the best approach, if the market allows it, is to do both actions in parallel.
- Before receiving or giving a lump sum, again depending on which role you are in, it is essential to agree deadlines both for the payment of the rest of the purchase price and for eviction or immigration. Note; the deadlines you negotiate must be reasonably longer than the deadline you agreed upon in the first in a series of buy-and-sell!
All this is worse when it is put on paper and does not sound so complicated, however Croatia is a reality that clients mostly live in the properties they sell, and that it is realistic to expect that related sales have more than four clients, more precisely sales. In this situation, it is essential to be familiar with the negotiated conditions of all these sales and to have, in addition to knowledge and practice, excellent coordination skills.
I am of the opinion that a client without experience should really not engage in this alone, because only an expert person knows how to anticipate all situations and challenges through such a procedure, and take the time to respond to them.
If you find yourself in such a situation or plan to start a related purchase, feel free to contact us to address!