Buying and selling a house at the same time can be stressful. Sell too early, and you may struggle to find somewhere suitable to live. Buy too early, and you could be left with the financial burden of two properties or feeling pressured to accept a disappointing offer on your existing home.
For homeowners, buying and selling a house at the same time raises one immediate question: should you buy first or sell first? There isn’t one right answer for everyone. A useful starting point is to consider which transaction is likely to be harder or take longer.
As a general guide, buying first may make sense if your existing home is ready to sell and likely to attract a buyer quickly. Selling first is usually the more cautious approach if your home needs significant preparation, its sale price is uncertain, or market conditions suggest it could take time to sell. Your finances and the availability of suitable replacement properties must also influence the decision.
Should I Sell My House Before Buying Another?
Selling first provides greater certainty about the funds available for your next purchase. Once your sale is unconditional, you’ll have a clearer idea of your equity and budget, and you avoid the risk of owning two properties for an extended period.
When buying and selling a house at the same time, the disadvantage of selling first is time pressure. If you haven’t found a replacement by settlement, you may need to rent, move twice or make compromises you’d rather avoid.
Buying first allows you to secure a suitable home before committing to sell. This is particularly appealing when you’re looking for something unusual or in a tightly defined location.
But it introduces financial risk. Your existing property might sell more slowly or for less than expected, leaving you with additional interest costs or a larger mortgage than planned.
When buying and selling a house at the same time, don’t choose either option solely to avoid the inconvenience of moving twice.
Which Will Be Harder — Selling Your Home or Buying the Next One?
For anyone buying and selling a house at the same time, this is the question I’d encourage homeowners to investigate before deciding on their strategy. The market for the property you’re selling may be very different from the one you’re buying into.
When Buying First Makes Sense
If your current home is well-presented, ready to list and in strong demand, a reasonably quick sale may be realistic. Buying first can be especially attractive if your replacement property is likely to be harder to find.
For example, a family looking for a renovated four-bedroom home within one Brisbane school catchment may wait months for a suitable listing. If their existing townhouse is in a popular location, has few competing listings and is likely to sell readily, securing the next home first may be a sensible strategy.
However, a likely quick sale is not a guaranteed sale. Before signing a purchase contract, confirm that you can fund settlement and manage a longer-than-expected selling period. Bridging finance, savings or other approved arrangements may be necessary.
When Selling First Makes Sense
If your existing home needs repairs, renovations, decluttering or substantial preparation, you may not be able to bring it to market promptly.
Selling first is also worth favouring when the likely selling price is difficult to establish, demand is subdued, the property appeals to a narrow group of buyers or comparable listings are taking a long time to sell.
In these circumstances, committing to another purchase before you have sold could put you under pressure to discount your home or take on more debt than anticipated.
A longer settlement on your sale may give you extra time to find a replacement without the same financial exposure.
Speak to Both a Selling Agent and a Buyer’s Agent
Good advice on buying and selling a house at the same time starts with realistic market assessments. Before committing, ask a local selling agent what preparation your home needs, what it should realistically sell for and how long a sale might take. Look for evidence from comparable sales rather than relying on an optimistic appraisal.
At the same time, ask a local buyer’s agent how often suitable replacement properties come onto the market, how much competition exists and what your budget can realistically achieve.
If you’re upsizing in Brisbane or downsizing to a more specialised type of home, these differences between the selling and buying markets can matter.
Finally, discuss your borrowing capacity and contingency plans with a mortgage broker or lender. The ideal order is not necessarily the one you can safely finance.
How to Buy and Sell a House at the Same Time
You can manage buying and selling a house at the same time in several ways, depending on which transaction comes first.
Sell First With a Longer Settlement
You might negotiate a 90- or 120-day settlement to give yourself more time to purchase. This provides greater certainty about sale proceeds but doesn’t guarantee you’ll find a new home before moving out.
Buy First, Then Sell
Where finance permits, this lets you focus on finding the right property. You can then prepare and market your existing home, potentially after you’ve moved out. As a contingency, always allow for a slower sale or a lower-than-expected price.
Coordinate the Settlements
It may be possible to arrange the sale and purchase settlements for the same day, so your sale proceeds help fund your purchase. However, the two contracts remain separate, and a delay or failure in one transaction can affect the other. Have your solicitor coordinate the arrangements and explain the risks.
Sell, Then Rent Temporarily
Renting and moving twice can be inconvenient, particularly for families with children or pets. But having time to select a suitable property without a looming settlement deadline can be worth the extra cost.
Can You Make an Offer Subject to Selling Your Existing Property?
A subject-to-sale offer makes your purchase conditional on selling your existing home, according to the terms of a specially drafted contract condition.
When buying and selling a house at the same time, a subject-to-sale offer can sound appealing to buyers, but it’s often unattractive to sellers. You’re effectively asking them to take their property off the market while they wait for your home to sell.
At Your Property Hound, we’ve found that subject-to-sale offers seldom succeed in competitive markets. Sellers typically favour purchasers who can proceed with fewer conditions. You might need to offer a premium to compensate for the uncertainty, and even then the seller may decline.
Your position may be stronger if your existing property is already under an unconditional contract, rather than not yet listed for sale. In Queensland, have your solicitor prepare or review any special condition and explain the relevant deadlines and termination rights.
How Does Bridging Finance Work, and Is It Worth It?
For homeowners buying and selling a house at the same time, bridging finance is a short-term lending arrangement that helps you purchase another property before your existing one sells. The lender considers your current mortgage, the value of both properties, your equity, anticipated sale proceeds and the loan expected to remain after the sale.
The total debt while you hold both properties is sometimes called *peak debt*. Once your existing home sells, the proceeds reduce the debt to its expected ongoing level, sometimes called *end debt*.
Who Is Eligible, and How Is It Arranged?
A lender or mortgage broker assesses the security properties, available equity, credit history, income, borrowing capacity and likely sale price. Policies vary: sufficient equity alone doesn’t guarantee approval. Ideally, investigate this option before you find a property you want to buy.
How Long Does Bridging Finance Last?
Bridging periods commonly run for up to six or twelve months, depending on the lender. For example, Commonwealth Bank’s bridging loan has a maximum term of twelve months. Interest-only payments may be available, while other products can have different repayment structures.
What Does Bridging Finance Cost?
Costs depend on the loan balance, interest rate, fees and how long the existing home remains unsold. As an illustration only, assume $500,000 of debt incurs interest at an indicative 8% per annum:
- Three months: approximately $10,000
- Six months: approximately $20,000
- Twelve months: approximately $40,000
This assumes a constant $500,000 balance and simple interest; it excludes fees, compounding and other debt. The 8% rate is illustrative, not a current quote or a rate available to every borrower. Your actual costs may be substantially different.
What Are the Risks?
The biggest risks are a slow sale, a lower-than-expected sale price and mounting interest or holding costs. If your home doesn’t sell within the agreed bridging period, the lender may impose additional costs or take other steps under the loan terms.
For this reason, get a conservative selling appraisal and ask your mortgage broker to assess the financial impact if your property takes longer to sell or sells for less than expected. Bridging finance can provide greater flexibility, but it’s important to understand the potential costs and risks before committing to a purchase.
How Can You Avoid Moving Twice?
An extended settlement, coordinated settlement dates or an appropriately documented agreement (eg rent-back arrangement) to remain in the sold property for a short period may help. Each requires agreement and careful legal advice.
When buying and selling a house at the same time, don’t let the goal of moving only once dominate your decisions. Paying for temporary accommodation and storage may be preferable to accepting an unnecessarily low offer or buying a home that isn’t right for you.
Have a fallback plan covering temporary accommodation, storage, removalists and possible settlement delays. Planning for a less-than-perfect outcome often makes the process less stressful.
How Can a Buyer’s Agent Help?
At Your Property Hound, we know buying and selling a house at the same time requires understanding both markets. We help people buying in Brisbane and on the Gold Coast understand the market for their next property before they commit to selling or buying.
We can assess how readily suitable homes are likely to become available, identify listed and off-market opportunities, inspect properties, undertake due diligence and negotiate price and contract terms. We can also coordinate with your solicitor and broker around purchasing timelines.
Our role is to represent the buyer, not sell their existing property or provide finance advice. Working alongside a knowledgeable selling agent, broker and solicitor helps you make decisions based on both transactions rather than guesswork. You can read more about what a buyer’s agent does for you.
Frequently Asked Questions
Can You Settle on Both Properties on the Same Day?
Yes, this is known as contemporaneous settlement, where the sale of your existing home and purchase of your next property settle on the same day. Your solicitor can draft a special condition making settlement of your purchase conditional upon settlement of your existing property. This condition must be agreed to by the seller and can provide additional protection if your existing sale is delayed.
What if My Existing House Doesn’t Sell Before My New Purchase Settles?
If you’re relying on the sale proceeds to fund your next purchase, you could face a funding shortfall and potentially breach your purchase contract. This could result in losing your deposit and being liable for additional costs or penalties. Before committing to a purchase, make sure you have alternative finance or a bridging loan available if your existing property doesn’t sell in time. Don’t assume the seller will agree to extend settlement.
Can I Stay in My Home After Selling It?
Yes, provided the buyer agrees. One option is to negotiate a longer settlement period. Alternatively, you may be able to remain in the property after settlement under a formal lease agreement arranged through the solicitors. You can negotiate this upfront as a special condition in the contract or agree to it later if circumstances change. Document any arrangement properly, including the rental terms and occupancy period.
Is It Better to Rent Between Selling and Buying?
It can be, especially when your next home is difficult to find, and you’re concerned about making a rushed decision. Selling first and renting temporarily also reduces your financial risk, as you’ll know exactly how much money is available for your next purchase and won’t need to carry the debt on two properties. Weigh the additional rental and moving costs against the financial certainty and flexibility this approach provides.
Final Thoughts
Buying and selling a house at the same time is easier to plan when you know which transaction will be the biggest challenge.
If your existing property is ready to sell and demand is strong, buying first may give you time to secure the right home. If your property needs extensive preparation, its value is uncertain, or a sale could take months, selling first is generally the more cautious choice.
Whichever order you choose, test the financial risks, seek advice on both markets, and leave room for things not to go exactly to plan. The objective isn’t simply to coordinate two moves — it’s to make sound decisions on both properties.