How to Buy and Sell a House at the Same Time

Buying and selling a house at the same time can be one of the trickier property moves to coordinate. Do you sell your current home first and risk having nowhere to move, or buy your next home first and risk owning two properties at once?

There isn’t one strategy that’s right for everyone. The best approach depends on your finances, the strength of the market, how quickly your current home is likely to sell and how difficult your next property may be to find.

In this guide, we’ll look at the main options for buying and selling a house at the same time, the risks of each approach and some practical ways to make the transition easier.

Prepare Your Current Home for Sale

Even if you plan to buy before you sell, it makes sense to prepare your existing home for sale early. That way, if you find the right property, you’re in a better position to put your current home on the market quickly.

Speak with local selling agents about your property’s likely value, how long similar homes are taking to sell and what, if anything, should be done before going to market. It’s also worth speaking with your broker or lender early so you understand how buying before selling, bridging finance or a longer settlement might affect your borrowing position.

Avoid automatically spending money on renovations or improvements before selling. Some work may improve presentation or value, but other expenditure may not be recovered in the eventual sale price.

Should You Buy First or Sell First?

This is usually the biggest decision when buying and selling a house at the same time. Both approaches can work, but each involves a different set of risks.

Selling first gives you certainty about how much money you’ll have available for your next purchase and avoids the financial pressure of owning two properties. The downside is that you may need temporary accommodation if you haven’t found your next home by settlement.

Buying first gives you more time to find the right property and avoids feeling pressured to buy simply because your current home has sold. However, you’ll need to be comfortable that you can finance the purchase and manage the risk if your existing property takes longer to sell or sells for less than expected.

Your decision should take into account your financial position, borrowing capacity, the likely demand for your current home and how difficult it may be to find the type of property you want to buy.

Option 1: Sell Your Current Home First

Selling your current home before buying gives you the greatest financial certainty. Once you have a sale price and settlement date, you know how much equity you have available and can approach your next purchase with a clearer budget.

It can also make your offer on the next property more attractive because you aren’t relying on the future sale of your existing home.

The main risk is timing. If you sell before finding the right property, you may need somewhere to live between settlements. This could mean renting temporarily, staying with family or negotiating a longer settlement period with your buyer.

Another risk is feeling pressured to buy because your settlement date is approaching. Having a temporary accommodation plan can give you more flexibility and help avoid buying the wrong property simply because you need somewhere to move.

Option 2: Buy Your Next Home First

Buying your next home before selling can give you more control over the property search. You can wait for the right home rather than feeling pressured to buy because your existing property has already sold.

It can also make the physical move easier. If settlement dates allow, you may be able to move into the new home before preparing and selling your existing property.

The trade-off is financial risk. You need to understand how the new purchase will be funded before the proceeds from your existing home become available, and whether you could comfortably manage both properties if the sale takes longer than expected.

Before taking this approach, speak with your broker or lender about your borrowing capacity, likely sale proceeds and the different finance options available to you.

What About Bridging Finance?

Bridging finance can provide a way to purchase your next home before your existing property has sold. In simple terms, it can help cover the gap between buying the new property and receiving the proceeds from the sale of your current home.

This can give you greater flexibility when searching for your next property, but it comes with additional costs and lending requirements. Your eligibility, borrowing capacity and the amount you can access will depend on your individual financial position and lender.

Before relying on bridging finance as part of your strategy, speak with your mortgage broker or lender so you understand the repayments, interest costs and how long you could comfortably carry the finance if your existing home takes longer than expected to sell.

Try to Coordinate Your Settlement Dates

If you’re buying and selling around the same time, the settlement dates can make a significant difference to how smoothly the move works.

Ideally, you may be able to negotiate the sale of your existing home and purchase of your next home so the settlements occur on the same day or within a short period of each other. A longer settlement on either transaction can sometimes provide the flexibility needed to bring the dates together.

However, relying on perfectly matched settlements can introduce risk. Delays can occur, so discuss the proposed timing with your conveyancer and make sure you understand what would happen if one settlement was delayed.

Having a backup plan — even if it’s only temporary accommodation or storage — can take some of the pressure out of trying to make both transactions line up perfectly.

Can You Make an Offer Subject to Selling Your Home?

It may be possible to make an offer on your next property subject to the sale of your existing home. This can reduce the financial risk of committing to a purchase before your current property has sold.

The downside is that a sale condition can make your offer less attractive to a vendor, particularly in a competitive market where other buyers are able to make unconditional offers.

How workable this strategy is will depend on the property, the vendor’s circumstances and the level of competition. If your existing home is already under contract, an offer subject to settlement of that sale may also be viewed differently from an offer where your property hasn’t yet been listed or sold.

Before including this type of condition, discuss the wording and implications with your conveyancer or solicitor and make sure your finance position is clear.

How a Buyer’s Agent Can Help When Buying and Selling at the Same Time

When you’re selling one property while searching for another, there can be a lot happening at once. You’re dealing with selling agents, inspections, offers, finance, conveyancing and settlement dates while also preparing your existing home for sale.

A buyer’s agent can take responsibility for much of the buying side of the process, including searching for suitable properties, assessing value, attending inspections, communicating with selling agents and negotiating on your behalf.

At Rosie & Rosie, we can also work alongside your selling agent, mortgage broker and conveyancer so everyone understands the timing of your sale and purchase.

Most importantly, having someone focused on the purchase can help you avoid feeling pressured to compromise on the wrong property simply because your existing home has sold or a settlement deadline is approaching.

So, Is It Better to Buy or Sell First?

There isn’t one answer that works for everyone. If financial certainty is your priority, selling first is generally the lower-risk approach because you know exactly what your existing home has sold for before committing to your next purchase.

If finding the right next home is more important and your finances allow it, buying first can give you more time and flexibility during the property search.

Whichever approach you take, preparation is important. Understand your borrowing position, get a realistic appraisal of your current home, speak with your conveyancer about the contract and settlement implications, and have a backup plan if the timing doesn’t work perfectly.

The aim isn’t necessarily to make both transactions happen on exactly the same day. It’s to structure the sale and purchase so you can move from one home to the next without taking unnecessary financial risk or feeling pressured into the wrong purchase.

Frequently Asked Questions About Buying and Selling at the Same Time

Can I buy another house before selling mine?

Yes, depending on your financial position and borrowing capacity. Some buyers can fund the new purchase while still owning their existing home, while others may use bridging finance. Speak with your broker or lender before committing to a purchase.

Can I make an offer on a house before mine has sold?

Yes, you can make an offer before your existing home has sold. Depending on your circumstances, you may want the offer to be subject to the sale or settlement of your current property. This can reduce your risk but may make the offer less attractive to the vendor.

Can I sell and buy a house on the same day?

It is possible to coordinate the settlement of your sale and purchase for the same day. However, timing needs to be carefully managed because a delay with one transaction can affect the other. Your conveyancer can advise you on the settlement arrangements and risks.

What happens if I sell my house before finding another one?

You may need temporary accommodation until you find and settle on your next home. This could involve renting, staying with family or arranging other short-term accommodation. Having a backup plan can reduce the pressure to buy quickly.

Is it better to sell your house before buying another?

Selling first generally provides greater certainty because you know your sale price and available funds before buying. Buying first can provide greater flexibility in finding the right home, but usually involves more financial risk. The better approach depends on your circumstances.

Buying and Selling a Home at the Same Time?

If you’re planning to sell your current home and buy your next property, Rosie & Rosie can help through our buyers agent service.

We can help you define your property brief, search for suitable homes, assess opportunities and negotiate with selling agents while you coordinate the sale of your existing property.

If you’d like to discuss your plans and the best way to approach your next purchase, get in touch with us.