Downsize or Upsize: Selling and Buying a Home at The Same Time

November 26, 2019

There are plenty of reasons why it might be time to move home. Maybe you’re upsizing to get more space for a growing family, downsizing after the kids have left home, or buying a new home in a better suburb.

Whatever your reasons, things can get complicated when you find the home of your dreams but still haven’t sold your current home. Here’s what you need to consider when selling and buying a home at the same time.

Which Option is Best For Your Circumstances?

There are lots of different options at your disposal when you’re ready to sell your home and buy another one, but not every method will suit your circumstances:

  • Buy first: Ideal if you have plenty of equity in your current home and the necessary finances to hold both properties for an extended period of time.
  • Sell first: If you don’t have much equity or if you think your home may take a long time to sell.
  • Buying with a guarantor loan: If you have strong finances but minimal equity in your home, someone like your parents could act as guarantor (putting up their property as security) while you buy the home of your dreams and wait to sell your current one.
  • Simultaneous settlement: It may not always be possible to line up the sale of your current home and the purchase of your new home to settle on the same day. However, if you manage it then you won’t have to worry about paying two mortgages at the same time or looking for somewhere to live while your new home waits to settle.
  • Bridging loan: This may be a good option for home owners who have lots of equity in their current home but can’t afford to hold both properties at the same time. Read more about bridging finance near the end of this article.

Consider Extending The Settlement Period

Being able to extend the settlement period is a great option that could put your mind – and your finances – at ease. However, it’s entirely dependent on whether the other party agrees to the extension.

This means that if you sell your home first, the buyer will need to accept the extended settlement period as part of the ‘condition of sale’. If you buy first, then your offer must include a caveat that there is to be an extended settlement period – in many cases this may not suit the seller’s needs, especially if they’ve already bought their next home.

Communication is key here, so make sure every party understands the reasoning behind extending the settlement date.

Add a Clause to The Fine Print

If you don’t want to risk being left out of pocket – or out of home – then you might want to add a condition to your offer for a new home. This ‘subject to completion of sale’ means your offer is only valid once your own home has been sold.

Remember, though, that the seller isn’t bound to accept your offer, and they may decide to go with a different buyer if your home doesn’t sell within a reasonable period.

Buy a Home That Hasn’t Been Built Yet

Buying in a master-planned community like Bloomdale could be the perfect solution if you’re selling and buying a home at the same time. It means you won’t have to worry about rushing the sales process and can pick the right time in the market to sell. Just make sure if your settlement period ends before your new property is built, you’ll need to find somewhere to live in the interim.

A house and land package in a master-planned community is oftentimes better than buying in an established suburb because you get all the perks of a family-friendly neighbourhood, beautifully landscaped streets and a range of parks as well as schools, shops and local services close by. That means when it comes time to move into your brand-new home, you’ll have all the best amenities at your disposal.

Research Whether a ‘Bridging Loan’ Could Make the Process Easier

Bridging finance can help out buyers who are struggling to sell their current home but have already purchased their new property. Bridging loans are usually interest-only and are taken out on top of your current home loan.

Servicing two mortgages at the same time isn’t for everyone, and you’ll want to make sure your current property has plenty of equity – otherwise you may not qualify for additional financing. However, if you only need a few extra weeks to sell your current home and lock in settlement, then this high-interest loan could be the solution for you.


For the best of country charm, comfort and contemporary living, as well as the Melbourne CBD just a 30-minute drive away, Bloomdale is the place to be. With a wide choice of block sizes to suit your needs and established facilities at Diggers Rest and nearby Sunbury, you’ll enjoy the convenience of connection from the first moment you enter the community.

Enquire today to find out about house and land packages at Bloomdale.