It seems to a simple layman that to buy an apartment or other real estate, it is enough to get the necessary amount, choose an object and draw up documents. However, realtors know that in practice, things can turn out to be not so simple. Typically, a property is sold to purchase something in return. That is why there are long “chains” consisting of buyers and sellers, which significantly complicates any transaction.
Real Estate Market Situation
Far from the first year, many transactions related to the purchase and sale of apartments occur in the form of “chains”. Selling real estate, people immediately plan to purchase new housing using the proceeds. However, none of them, as a rule, wants to travel into the void.
For this reason, the buyer of real estate is not in a very favorable position. After paying for the apartment, he has to wait until the seller vacates the living space. This means that even if you pay the full price, the buyer will not be able to immediately become the full owner of the purchased apartment. This is a significant drawback of the so-called "chain".
The number of such transactions is about 60-70 percent and even more. The number of participants in one "chain" may be eight to ten participants.
What buyers do not know?
As a rule, apartment sellers are in search of new objects, so each buyer in the “chain” has to wait until there is a worthy alternative and the seller will vacate the living space. I must say, some sellers begin to look for a suitable object only after reaching an agreement with the buyer.
It is possible that the selected object will also be a member of the "chain". This drags the deal even further. However, a net sale, which involves the sale of an apartment without having to buy another, is very rare in the market. That is why it is often necessary to work out several options at once.
Make sure your finances are in order
When it comes to buying real estate, it is important to make sure that all your finances are in order. A recent study showed that one in ten “chains” is collapsing due to the fact that the buyer cannot provide the financing needed at the final stages of the acquisition. This means that the buyer does not have the money to fully pay the loan or get it.
Real estate acquisition is a laborious process. Without the necessary funding, there is a real risk of losing an interesting object. Fortunately, there are a number of financial products that can be adapted to the individual needs of the buyer. For example, a short-term loan or a long-term mortgage.
Buyer Tips
If you become a member of the "chain" when buying real estate, there are certain risks that you should try to avoid.
- Find out right away what deal you are facing: pure or alternative. Typically, ads indicate this option. However, it will be useful to clarify this nuance if the timing of the purchase of an apartment is important to you.
- Negotiate terms. Do not let everything go by chance and rely on the honesty of the seller with whom you have to do business. Agree on a specific date when the object should be transferred to you. If the seller says that this will happen after buying an alternative apartment, you should be alerted. This wording does not oblige you to anything.
- Fix the cost. This is especially true in conditions of economic instability.
Tips for sellers
If you need to buy an alternative apartment, this greatly complicates the deal. That is why you should start looking for a suitable option in advance. Even before there is a real buyer. This will significantly accelerate the deal.
Analyze the offers of other sellers to determine the price of the apartment. Keep in mind that sometimes you have to make a discount to expedite the transaction.
This will not lose interested buyers.