For many Sydney homeowners, deciding whether to buy their next property before selling their current one is one of the most difficult parts of moving.
There is no single right answer.
The best approach depends on your financial position, the type of property you are buying, how competitive your preferred market is, and how much flexibility you have around settlement.
At Grantham Buyers Agents, we regularly assist clients who are upsizing, downsizing or resizing and need to coordinate both sides of the move.
Learn more about our Full Property Buying Service.
Buying Before You Sell
Buying first gives you certainty over where you are going next.
This can be particularly valuable if you are looking for a property type that is difficult to replace, such as a family home in a tightly held suburb, a downsizer property with single level living, or a home within a specific school catchment.
The main advantage is that you can wait for the right property rather than feeling pressure to buy because your current home has already sold.
However, buying first can also introduce financial and timing risks.
You may need to carry two properties for a period, arrange bridging finance or negotiate carefully around settlement dates.
The final sale price of your current home may also affect how comfortable you are with the price you have committed to on your next property.
For this reason, buyers should have a clear understanding of their financial position before committing to a purchase.
Learn more about our Vendor Advocate Service.
Selling Before You Buy
Selling first provides certainty around your available budget.
Once your current home has sold, you know exactly how much equity you have available and can approach the buying process with greater clarity.
It can also remove the pressure of carrying two properties at once.
The downside is that you may need to purchase within a defined timeframe.
If suitable properties are scarce, this can create pressure to compromise or pay more than you otherwise would.
In some cases, clients may also need temporary accommodation if they cannot secure their next property before settlement.
Settlement Terms Can Make a Significant Difference
The timing of the transaction can sometimes be just as important as the price.
A longer settlement period on a purchase can give you additional time to prepare and sell your existing home.
Similarly, some sellers may agree to a leaseback arrangement or other settlement terms that allow both parties greater flexibility.
These terms are not appropriate in every situation, but they can be useful tools when managing a coordinated sale and purchase.
Your solicitor or conveyancer should review any contractual arrangements, while your finance adviser should confirm what is appropriate for your financial circumstances.
Understand the Market on Both Sides
A key mistake is looking at the buying market and selling market as if they are the same.
You may be selling in one part of Sydney and buying in another.
Conditions can differ significantly between suburbs, property types and price brackets.
For example, there may be strong competition for quality family homes in your target suburb while the market for your existing apartment or townhouse is moving more slowly.
Before committing to either strategy, understand:
- how quickly suitable properties are selling in your target market
- how much competition you are likely to face
- how long your existing property may take to sell
- realistic expectations around your current property value
- the level of flexibility available around settlement
A Coordinated Strategy Can Reduce Pressure
The decision to buy or sell first should form part of a broader property strategy.
When we work with clients managing both transactions, our role can include assessing the buying market, advising on the likely timing of the search, coordinating with selling agents and helping structure negotiations around the client’s wider move.
This can provide greater clarity before important decisions are made.
Frequently Asked Questions
Is it better to buy before selling in Sydney?
It depends on your financial position and the availability of suitable properties. Buying first can provide certainty over your next home, but it may increase financial and timing pressure.
What happens if I sell but cannot find another property?
You may need to negotiate a longer settlement on your sale, arrange temporary accommodation or wait until the right property becomes available. Planning for this possibility before selling can reduce pressure later.
Can a buyers agent help coordinate a sale and purchase?
Yes. A buyers agent can manage the buying side of the transaction and work alongside your selling agent, solicitor, finance adviser and other professionals to help coordinate timing and strategy.
Can settlement dates be negotiated?
Yes. Settlement periods are negotiable, although the final terms depend on the circumstances and preferences of both parties.
If you are considering selling and buying, Grantham Buyers Agents can help you develop a clear strategy around your next move and manage the purchase from search through to negotiation.
Contact Grantham Buyers Agents to discuss your next property move.
