Sell first or buy first? Planning your next move in an uncertain market
By Ben Price·Posted
Finding your next home is exciting. Working out when to sell the one you already own can be the harder decision.
Do you sell first so you know what you have to spend? Or buy first so you have somewhere to move? There is no single answer that suits every owner. The useful starting point is a plan that still works if your sale takes longer or achieves less than you expected.
Westpac's October research described Australians hesitating over housing decisions while weighing interest rates, prices and their own finances. That uncertainty is understandable. It does not mean you need to predict the market before you can prepare for a move.
Start with the move you need to make
Before discussing a launch date, write down why you are moving and which dates are genuinely fixed. A work relocation, the end of a lease or a particular accommodation requirement may affect your choices more than a national price forecast.
Then separate what you need from what you would prefer. Would temporary accommodation be manageable? Could you store furniture? How long could you comfortably wait for a suitable property? These are practical questions, and the answers will help your advisers understand the plan.
Selling first gives you a clearer starting budget
Once your sale is settled, you know the proceeds available rather than relying on an appraisal. A signed contract can provide more information earlier, but conditions and settlement still need to be considered.
The trade-off is accommodation. If you have not secured your next home, allow for rent, storage and potentially moving twice. You may also find that suitable properties are scarce in the area you want, even when the broader market appears quieter.
Ask your agent about realistic selling timeframes for homes like yours. Ask your legal adviser about settlement options before assuming you can arrange the dates to suit a future purchase. Any agreement depends on the other party too.
Buying first needs a funding plan you can rely on
Buying first can give you certainty about where you are going. It can also leave you paying for two properties while waiting for the sale proceeds.
ASIC's Moneysmart describes bridging finance as short-term finance covering the period between buying a new property and selling the existing one. Availability, costs and suitability depend on the lender and your circumstances; it is not an automatic solution.
Before committing to a purchase, ask your lender or mortgage broker to explain the approved arrangements, repayments, fees and what happens if the sale is delayed. Have your solicitor or conveyancer review the contract and any proposed conditions. Do not assume a finance discussion or an agent's estimate makes a purchase safe to commit to.
Test a less convenient version of your plan
It is easy to build a budget around a hoped-for sale price and a smooth settlement. Also test what happens if the price is lower, preparation takes longer or the next property needs work.
List the mortgage payout, selling costs, purchase costs, moving expenses and any temporary accommodation. Ask the relevant providers for estimates. Keep an allowance for costs you cannot yet confirm, rather than treating the amount left after the sale as entirely available for the next deposit.
This is not about expecting everything to go wrong. It is about knowing which changes you could manage and which would put you under pressure.
Choose an agent who understands the whole timetable
Tell the agents you are comparing that your sale is part of another move. Ask how they would organise preparation, inspections, feedback and decisions around your circumstances.
A confident promise of a quick sale is less useful than an explanation supported by relevant recent results and a clear backup plan. Ask what the agent would recommend if the early response differs from expectations, and how any additional spending would be approved.
BrokerMyAgent helps sellers Australia-wide compare suitable agents and review appraisals, and we review agents' selling proposals, commission and marketing costs, and challenge anything that doesn't stack up. Your chosen sales agent conducts the sale and negotiates with buyers; your lender and legal adviser help you resolve finance and contract questions.
If you are considering a move and would like help with the selling side, book a free, no-obligation 15-minute call. You do not need to have found your next home before we talk.
Sources and market context
Planning a move and want a clear view of the selling side? Start your free enquiry and we'll help you plan.