Relocation means moving from the home you currently live in to another property.For homeowners, strategic decisions about when to sell and when to buy have a major impact on financial planning, loan burden, and sale price.This article explains three timing patterns for selling and buying, along with the key points to watch.
What is relocation? Its basic definition
Relocation means moving to another residence after selling, leasing, or otherwise disposing of the home you currently live in. When you own your home, it is common for the move to involve a sale and purchase contract,including handling the remaining mortgage balance, managing the risk of double payments, and planning your financeswhich means several factors need to be managed at the same time.
How should you choose the timing of a sale and purchase when relocating?
Pattern 1: Sell first, then relocate
In this approach, you sell your current home first, secure the funds, and then look for a new one.Its biggest advantage is that you can set your budget after knowing the sale proceeds, which makes financial planning easierHowever, you may need temporary housing between the sale and signing for the new home, which can create overlapping moving and rent costs. This option suits people who want to move only after fixing their budget or who want to use sale proceeds as a down payment.
Pattern 2: Buy first, then relocate
In this approach, you purchase the new home first and then sell your current residence.Its benefit is that you can avoid temporary housing and take your time finding the right homeOn the other hand, if you still have a mortgage on your current home, there is a risk of carrying two housing loans at once. This option suits people who want to avoid temporary housing and do not want to compromise on the choice of a new home, provided they have enough financial room.
Pattern 3: Handle the sale and purchase in parallel
In this approach, you move forward with selling your current residence and searching for a new home at the same time.Its key feature is that it can minimize the period of temporary housing or dual loansHowever, there is no guarantee that the sale and purchase will proceed smoothly at the same time, so scheduling risk remains. This option suits people who want to minimize time, cost, and effort.
What should you watch out for when relocating?
Be especially careful if you are still repaying a mortgage
When relocating,you may incur costs for full loan repayment and for removing the mortgage lien (including judicial scrivener fees)It is important to simulate the risk of ending up with dual loans, and if the burden looks heavy, starting with a sell-first approach is advisable. A relocation loan or bridge financing can also be effective options.
Set the asking price strategically
If it is too high, the property may sit on the market; if it is too low, you may fall short on funds.Request multiple appraisals from a reliable real estate companyand set the price only after understanding the appropriate market level.
Choose a reliable real estate company
Request appraisals from multiple companies,the risks of dual agencyand assess their responsiveness before deciding. Understanding market pricing and working well with the person in charge are key to a successful relocation.
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Frequently Asked Questions (FAQ)
Q. Which relocation method carries the least risk?
If you want to minimize financial risk, selling first is generally the safest approach. Temporary housing does add cost, but it allows you to move forward with a fixed budget and a clearer plan.
Q. What should you do if you end up with dual loans?
A relocation loan or bridge financing can help. However, because interest and fees apply, you should consult your financial institution in advance.
Q. Are there fees for repaying a mortgage in full when relocating?
Yes. The amount varies by financial institution and procedure, but the typical range is about 5,000 to 20,000 yen. Separate judicial scrivener fees for removing the mortgage lien are also required.
Q. How should you decide on the asking price?
Request appraisals from multiple real estate companies and set the price after understanding the market level. If it is too high, the property may not sell; if it is too low, you may face a funding shortfall.
