Should I Buy Before I Sell?

It's probably one of the most common questions we're asked.

Should I buy my next home before I sell my current one?

The honest answer is that there isn't a one size fits all approach.

The right decision depends on your financial position, your appetite for risk, your personal circumstances, and how much flexibility you have with timing.

The good news is that, with the right planning, both options can work.

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Buying before you sell

One of the biggest advantages of buying before you sell is certainty.

You can secure the home you really want without worrying that it might be sold to someone else while you're preparing your current property for sale.

For many families, that peace of mind is worth a great deal.

The challenge is managing the timing.

If your new home settles before you've sold your current one, you may need bridging finance or enough borrowing capacity to own both properties for a period of time.

There's another pressure that buyers don't always consider.

If your purchase settlement is approaching and your current property hasn't sold, you may feel compelled to accept an offer that's lower than you had hoped simply to keep everything moving.

The good news is that this isn't always unavoidable.

Depending on your circumstances, it may be possible to negotiate a longer settlement on your purchase, giving you additional time to sell your existing property before settlement.

Every transaction is different, which is why having these conversations early can make a significant difference.

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Selling before you buy

Selling first gives you certainty about your budget.

You'll know exactly how much your property has sold for, how much equity you'll have available, and what you can comfortably spend on your next purchase.

That certainty can also put you in a stronger negotiating position when the right property comes along.

The challenge is timing.

If settlement is approaching and you haven't found your next home, it's easy to feel pressure to secure a property simply because time is running out. In some cases, that can lead to compromising on features that were originally important or making a decision you otherwise wouldn't have made.

Depending on your circumstances, you may also need temporary accommodation or short term storage while you continue your search.

For some people, that's a worthwhile trade off for the certainty of knowing exactly where they stand financially. For others, the thought of moving twice or feeling pressured to buy makes purchasing first the better option.

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There may be more options than you think

Many people assume the decision is simply whether to buy first or sell first.

In reality, the terms of your contracts can often create flexibility and help make both transactions work together.

Settlement dates can sometimes be negotiated to better align your sale and purchase. A longer settlement, for example, may give you additional time to sell before completing your purchase. In other situations, there may be other options available depending on the circumstances of the transaction.

Every property transaction is different, but understanding what's possible before signing a contract can remove unnecessary pressure and provide greater flexibility.

That's why it's worth speaking with your conveyancer, mortgage broker and real estate agent early. A little planning at the beginning can often save a lot of stress later on.

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Finding the right approach

There isn't a perfect solution that suits everyone.

Some people buy first. Others sell first.

The important thing is understanding the risks, the timing and the options available before making a commitment.

With the right advice and a clear plan, you can move forward with confidence, knowing you've chosen the approach that's right for you.

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