When you buy a new home with the proceeds of your current one, you are really running two deals that depend on each other: your buyer has to pay on time so that you can pay your seller. If one slips, the other is at risk — and under the preliminary contracts you may owe a penalty or lose a deposit. Here is how to put the pieces in order.
| Sequence | Advantage | Main risk |
|---|---|---|
| Sell first, then buy | You know exactly what you can spend | You need temporary housing and may miss the home you want |
| Buy first, then sell | You move once and choose without pressure | You need financing until the sale; pressure to sell quickly and cheaper |
| Both deals on the same day | No temporary housing, no bridge financing | You depend on several parties and banks on the same day |
This is the most predictable option for your budget: you sell, the money is in your account, and you search with a clear ceiling. The price is moving twice, plus the cost of temporary housing and possibly storage.
You can soften this by agreeing a longer vacating period with your buyer after the deed — against rent, free of charge or in exchange for a lower price. Whatever you agree, put it in the contract: the date, the condition of the property, who pays the bills until handover, and a penalty for late handover.
If you have found the right home and don't want to lose it, you need the money before the sale. The options are savings, a loan for the new home, or a combination.
Banks can accept a mortgage not only over the property being bought but also over another property — including your current home — as additional or substitute collateral. Terms differ from bank to bank, so before signing anything ask specifically:
The risk is twofold: for a while you carry the costs of two properties, and if the market slows you are under pressure to accept a lower offer. How a property with a mortgage is sold — how the bank is paid and when the mortgage is cancelled — is covered in a separate guide.
The neatest option, and the most demanding to organise. The usual order is: the sale of your home is signed first, you receive the price, then you sign the purchase. Payment often goes through the notary's special escrow account — how that works is explained in our guide to selling a mortgaged property.
What to watch:
A preliminary contract must be in writing and contain the essential terms of the final contract (Art. 19(1)–(2) ZZD); if one side refuses to sign, the other can sue for the final contract to be concluded (Art. 19(3) ZZD).
Before counting on the full proceeds, check whether you owe tax. In most cases selling a single home is tax-free, but there are exceptions — see our guide to tax when selling property.
This is an example, not a norm — real timings depend on the banks, the documents and the parties.
| Stage | What happens |
|---|---|
| Weeks 1–2 | Valuation of your current home, documents, first talk with the bank |
| Weeks 2–6 | Listing and viewings; search for the new home in parallel |
| Weeks 6–7 | Preliminary contract on the sale, with a financing condition and vacating deadline |
| Weeks 7–8 | Preliminary contract on the purchase, with a condition precedent and a later deadline |
| Weeks 8–12 | Loan approvals, up-to-date certificates |
| Completion day | Final deeds — sale first, then purchase |
| After completion | You vacate the old home by the agreed date |
This article is general information, not legal or tax advice for a specific case.
If you are selling to buy, call us or visit our office. We will line up both deals, the deadlines and the conversation with the bank before you sign the first preliminary contract.
