How to Sell My House to Buy another?
February 6, 2025
Moving house is an important decision, and you may have the following in mind: selling my house to buy another. Therefore, it is normal for many doubts to arise. What is the best time to sell? How much does the whole process cost? Is it possible to do it without losing money? In this post, we resolve these questions and explain how to manage this change efficiently.
If I Sell My House to Buy another, What Expenses Do I Have?
One of the first aspects to consider are the expenses associated with the sale and purchase of a new home. When selling your property, you must take into account:
- Imposed on the Increase in the Value of Land of Urban Nature (municipal capital gains): this tax is collected by the town hall and depends on the time you have owned the home and the increase in the value of the land.
- Personal Income Tax (IRPF): if you obtain a capital gain on the sale, it is subject to taxation, except for exceptions such as the reinvestment of the profit in a new primary residence.
- Notary and registry expenses: include the cancellation of the mortgage (if any) and other administrative procedures.
- Real estate commission: if you use an agency to sell your property, this cost should be considered.
- Expenses of the new purchase: taxes (ITP or VAT, depending on the type of housing), notary, registration and appraisal.
All these expenses must be considered when calculating the total budget for the new acquisition.
If I Sell My House, how Long Do I Have to Buy another?
Time is a key factor when deciding to sell your house to buy another. If you want to avoid paying IRPF for the capital gain from the sale, you must reinvest the money in a new primary residence within two years.
This period counts from the date of sale to the purchase of the new home. If this period is not met, the tax exemption is lost, which may imply an additional cost in taxes.
To avoid transition problems between the sale and the purchase, one option is to agree on a temporary reservation clause with the buyer or explore short-term financing options.
Sell My House to the Bank to Buy Another
In some situations, the option of selling the house to the bank to buy another may be considered, especially if you want to settle a mortgage debt.
Banks may accept the dation in payment, which consists of handing over the home in exchange for canceling the mortgage debt. However, this option is only viable if certain requirements are met and is generally applied in cases of inability to pay.
Another alternative is to negotiate a bridging loan with the bank, which allows you to maintain the financing of the current home while buying the new one, thus avoiding the need to sell before having liquidity.
Sell My House with a Mortgage to Buy Another
Many people still have a mortgage when they decide to sell their house. In these cases, there are several options:
- Early cancellation of the mortgage: you can pay off the loan before selling, provided you have the money or can negotiate with the bank.
- Subrogation of the mortgage: if the buyer agrees, they can assume your mortgage and continue paying it.
- Bridging loan: as we mentioned earlier, it allows you to maintain financing while you make the change of housing.
Each case is different, so it is advisable to analyze which is the best option according to the financial conditions and the purchase strategy. If you want to know more, we leave you our post about whether you can sell a flat with a mortgage.
How to Sell your House with Espígul and Make the Change without Worries?
If you want to sell your house to buy another safely and efficiently, at Espígul we offer you the support you need throughout the process.
Our team of experts in real estate advice will help you sell your home in the best conditions and find a new property that fits your needs. In addition, we advise you on the management of mortgages and offer you personalized solutions to facilitate the transition from one home to another.
If you want more information, do not hesitate to contact us!
