How to buy a home when you have one to sell

The most challenging time to buy a home is when you already own one. Financially, it would be best if you sold your home before buying the next one, but sometimes the person you are buying off doesn’t want to be tied down waiting for your home to sell if things don’t work out. It’s especially true in a hot market.

In a hot market, most properties attract multiple offers. As a result, sellers are less inclined to accept a conditional offer. Particularly one that is reliant on a house sale.



Buyers need to be in a cash position to be competitive, which is hard to achieve if you already own a home.

In this scenario, buyers with a house to sell have a series of unattractive options:

𝗢𝗽𝘁𝗶𝗼𝗻 𝟭: You can keep offering on properties subject to selling your own home, but you will likely keep missing out. As a result, you could spend serious time and money investigating properties with little chance of success.

𝗢𝗽𝘁𝗶𝗼𝗻 𝟮: Secure bridging finance from your bank so you can buy before you sell. Bridging finance can be costly if your home takes a long time to sell, and the approval criteria can be hard to meet.

𝗢𝗽𝘁𝗶𝗼𝗻 𝟯: Sell first and take a punt that you will find a home you like once you’ve sold. If you don’t see something quick, you could end up having to find temporary accommodation and paying to move twice.

𝗢𝗽𝘁𝗶𝗼𝗻 𝟰: Buy first and take a punt that you can sell your home before you need to settle. This option comes with a zero backup plan and potentially puts pressure on you to accept the first offer that comes your way. You could end up selling for less than you should sell your home in time. Not an option for the faint-hearted, and not one we recommend.!

You’d be forgiven for thinking that none of those sound particularly appealing. But there are other options.

Alternative Solutions to Consider

Keep your existing home as a rental

Talk to a property manager to find out what your home might rent for. If the numbers stack up, your existing home could become your first investment property!

Sell first with a long settlement (most popular)

One perk of a hot market is that cash buyers are often flexible on settlement dates. Sell your existing home first and ask for a 3-4 month settlement, giving you time to find your next home before you have to move. Having clarity on exactly how much you have to spend on your next home allows you to take your time and focus on securing the best possible price.

Sell and then rent

Sell and then rent could be the best option if you are moving to a new location. Many families choose to rent for 6-12 months to get to know an area before deciding exactly where to buy. Explore different suburbs, check out local schools, discover your favourite local café, and scope out amenities like nearby parks and walking tracks.

Getting into a new home can be challenging, especially if you already have a home to sell. Throw kids and pets into the mix, and the resulting disruption can make you wonder why you ever wanted to move in the first place!

Keep in mind; there is a way through it. It might seem like an insurmountable problem, but many homeowners have successfully made the transition while also achieving a great sale price for their existing home.