Buy and sell real estate at the same time
Realestate.com.au describes the goal as a simultaneous settlement, where a sale and a purchase complete on the same day. In practice, it says, that rarely happens without effort. The guide says most people face one of two orders: buying before selling, or selling before buying. The guide adds that buying first can mean paying two mortgages at once, while selling first can mean a hurried purchase, two days of moving and rent in between.
The guide notes that simultaneous settlement is not impossible. It says it takes proactive steps and a fair bit of luck. The rest of its advice sets out ways to bring the two processes closer together.
Ways to line up a sale and a purchase
Realestate.com.au lists several ways to align the timing. One is to extend the settlement period. If selling first, the buyer of the home would need to accept a longer settlement as a condition of sale; the guide suggests three or four months. The guide says if buying first, an offer can include an extended settlement period, though the seller may not accept one, particularly where they have already committed to a purchase of their own.
Another option is to make an offer 'subject to completion of sale'. Realestate.com.au explains this as a contract condition that makes the offer valid only once the buyer's own home has sold. It says this can require negotiation because it may prevent the vendor from buying another property. A third option is a bridging loan, which the guide describes as typically interest-only and taken out on top of an existing home loan so two mortgages can be paid at once.
The guide also suggests asking an agent to bring the sale and purchase processes in line, so both might settle on the same day. It notes that this can reduce the need for a long settlement period.
What market conditions change
Realestate.com.au says the strength of the market affects how a person might approach buying and selling at the same time. In a rising market, the conventional wisdom it describes is to buy first and sell second, because there is less risk of failing to sell in a strong market. The downside it names is the risk of paying two mortgages at once.
In a cooling market or downturn, the guide says it is generally advised to sell first and buy second. That approach removes the risk of two mortgages, reduces pressure to accept a low offer, and gives a set budget for the purchase. The trade-off it names is needing to rent while looking for a new home, or rushing the purchase to avoid that.
Words used in the process
Realestate.com.au refers to a settlement period when it discusses the time allowed for exchanging contracts and settling. It describes 'subject to completion of sale' as a condition in a contract that makes an offer valid only after the buyer's own home is sold. It gives the name bridging finance to a loan used when someone keeps paying a mortgage on a home they have not yet sold.
The guide also mentions floating a property off-market, which it describes as testing how a home might sell at a later date. It refers to simultaneous settlement as the aim of the process. These are the working terms the guide uses when it discusses buying and selling at the same time.