You've decided to downsize, but the timing puzzle feels like trying to thread two needles at once.
The goal is straightforward: sell your family home and purchase your next property so both settlements align, giving you time to move without the chaos of temporary accommodation or storage. It's possible, and with the right structure, you can move directly from one property to the next without disruption.
Should you buy first or sell first when downsizing?
Most downsizers sell first, then buy. This gives you a confirmed sale price and settlement date to work with, and you know exactly what you have to spend. The risk is short-term accommodation if you haven't secured your next property before settlement, but many downsizers accept this trade-off for financial certainty.
Buying first works if you have the equity and serviceability to carry two mortgages briefly, or if you're purchasing with cash. It removes the pressure of finding your next home under a settlement deadline, but it requires a strong financial position and confidence that your current property will sell within a predictable timeframe.
If you're uncertain which approach suits your circumstances, working with a buyers agent who understands the downsizing transition can help you map out the sequence that fits your equity position, borrowing capacity, and timeline.
Structuring a longer settlement to give yourself time
When you sell your family home, you can negotiate a settlement period that gives you 90 or even 120 days to find and secure your next property. This extended timeline creates breathing room to search properly, conduct due diligence, and arrange your purchase without rushing.
Consider a seller in Balwyn who accepted an offer in late autumn with a 90-day settlement. That window allowed them to attend inspections across Kew, Camberwell, and Surrey Hills, engage a building inspector on their preferred property, and exchange contracts with a 60-day settlement that landed two weeks before their sale completed. They moved once, with a fortnight to clean, paint, and settle in before the removalists arrived.
Some buyers will push for a shorter settlement, particularly investors or owner-occupiers with pre-approval in hand. If you receive an offer with a tight timeframe, you can counter with a longer settlement as part of your negotiation strategy. Many buyers will agree if the price and terms are otherwise acceptable.
Using a subject-to-sale clause when buying before selling
A subject-to-sale clause allows you to make an offer on your next property conditional on selling your current home. It protects you from being locked into two properties if your sale falls through, but it also makes your offer less attractive to vendors.
In a slower market, some sellers will accept this condition, particularly if your property is already listed and generating interest. You'll typically need to provide evidence that your home is on the market, priced appropriately, and likely to sell within a reasonable period.
The clause usually includes a sunset date by which your sale must settle, and the vendor retains the right to continue marketing and accept backup offers. If they receive a stronger unconditional offer, they can give you a set period (often 48 to 72 hours) to remove your sale condition or withdraw.
This structure works when you've found the right property but need a few extra weeks to secure your sale. It's less effective in a competitive market where multiple buyers are circling, as most vendors will favour the unconditional offer.
Coordinating settlement dates once both contracts are signed
Once you have both contracts exchanged, your solicitor or conveyancer manages the timing. The objective is to settle your purchase a few days or weeks after your sale, giving you a short window to move without overlap or gap.
Your conveyancer will liaise with both parties to align the dates. If your sale settlement shifts due to delays with the buyer's finance or other hold-ups, your conveyancer can request an extension on your purchase settlement to maintain the sequence. Most solicitors will accommodate a reasonable adjustment if it's requested early and both sides are kept informed.
If the dates can't align perfectly, a short-term rental or staying with family for a week or two is usually manageable. Some downsizers arrange early access to their new property for cleaning and minor work, which can provide a buffer if the timing is tight.
What happens if your sale falls through after you've exchanged on a purchase
If your buyer fails to settle and you've already committed to purchasing your next property, you're contractually obliged to complete that purchase even if your sale funds aren't available. This can force you to secure bridging finance, which is costly and requires sufficient equity and income to service both loans briefly.
In practice, this scenario is uncommon. Most sale contracts include a deposit (typically 10%) held in trust, and buyers who fail to settle risk losing that deposit and facing legal action for damages. Solicitors also conduct thorough checks on finance approval and readiness before exchange, which reduces the likelihood of a collapse.
If you're buying before selling or working with tight timing, your conveyancer should confirm that your buyer's finance is formally approved and unconditional, not just pre-approved. This adds a layer of confidence that the sale will proceed as planned.
How a buyers agent coordinates both sides of the transaction
A buyers agent downsizing specialist can manage the property search while your sale is being prepared and marketed, so you're not waiting until after settlement to start looking. They'll shortlist properties that match your brief, attend inspections on your behalf, and present options as your sale progresses.
Once your sale is under contract, they can move quickly to secure your purchase, negotiate settlement terms that align with your sale timeline, and coordinate with your conveyancer to lock in the sequence. This removes the pressure of searching, attending inspections, and managing offers while also handling the sale process and packing up a family home.
In our experience, downsizers who engage both a selling agent and a buyers agent report feeling more in control of the transition, with fewer surprises and less time spent attending unsuitable inspections or second-guessing offers.
You've spent decades building equity and a life in your family home. The next chapter deserves the same care and attention, without the scramble of mismatched settlements or the compromise of buying under pressure. Call one of our team or book an appointment at a time that works for you, and we'll help you coordinate both sides so you can move once, on your terms.
Frequently Asked Questions
Should I sell my family home before buying my next property when downsizing?
Most downsizers sell first to gain financial certainty about their budget and settlement date. Buying first works if you have the equity and serviceability to carry two mortgages briefly, but selling first is usually the safer approach unless you're purchasing with cash or have strong borrowing capacity.
How long should I negotiate for settlement when selling my home to downsize?
A 90 to 120-day settlement period gives you time to search for your next property, conduct inspections, and arrange your purchase without rushing. Many buyers will accept a longer settlement if the price and terms are acceptable, and it removes the pressure of temporary accommodation.
What is a subject-to-sale clause and should I use one when downsizing?
A subject-to-sale clause makes your purchase conditional on selling your current home, protecting you from owning two properties at once. It makes your offer less attractive to vendors, but in a slower market or when your home is already listed and generating interest, some sellers will accept it.
What happens if my sale falls through after I've signed a contract to buy my next property?
You're still obliged to complete the purchase, which may require bridging finance if your sale funds aren't available. This scenario is uncommon because buyers risk losing their deposit and facing legal action if they fail to settle, and solicitors verify finance approval before exchange.
How does a buyers agent help coordinate a simultaneous sale and purchase?
A buyers agent manages your property search while your sale progresses, shortlists suitable properties, and negotiates settlement terms that align with your sale timeline. This allows you to move directly from one property to the next without the pressure of searching under a tight deadline.
