Upsizing is exciting, but it often comes with one big question:
Do you sell your current home first, or buy your next one first?
There is no single right answer. The best approach depends on your finances, how specific your brief is and how much suitable stock is available in the areas you want to buy.
Selling first: more certainty
Selling first gives you a clearer picture of your budget. You know what your current home has sold for, how much equity you have and what you can realistically spend next.
It can also strengthen your position when making an offer because you may not need a sale-of-property condition.
The downside is timing.
Once your home is under contract, the clock starts. If the right property does not appear quickly, you may feel pressure to compromise on location, condition or price.
Buying first: more flexibility
Buying first gives you more time to wait for the right home, which can be valuable if you have a specific brief or are looking in a tightly held suburb.
The trade-off is financial. You need to understand whether you can temporarily hold two properties, whether bridging finance may be required and what happens if your existing home takes longer to sell than expected.
Speaking with your mortgage broker early is essential.
The biggest risk is urgency
For many upsizers, the biggest risk is putting themselves in a position where they have to buy.
Once settlement on your existing home is approaching, properties you may normally have ruled out can start to look more appealing.
That pressure can lead to overpaying or compromising on a home that does not really suit your long-term needs.
Look at the market you are buying into
Before deciding whether to buy or sell first, look at how much suitable stock is actually available.
Properties may be staying on the market longer, but that does not always mean buyers have more genuine choice.
If your brief is broad, selling first may feel relatively comfortable. If you are looking for a very specific home in a tightly held Brisbane suburb, buying first may give you more control.
Can you line up the settlements?
For many upsizers, the ideal outcome is to have the sale of their current home and the purchase of their new home settle at around the same time.
That is why settlement terms can be just as important as price.
We recently helped a local Morningside family do exactly this. They were upsizing but wanted to stay in the area they already loved. We secured an off-market townhouse within three weeks and negotiated an extended settlement that aligned with the sale of their existing home, helping them avoid bridging finance.
Read their Morningside upsizing success story.
Understand your numbers before you start
Before making a decision, get clear on what your current home is realistically worth and what your budget will allow you to buy next.
Speak with your broker or lender about your borrowing capacity, available equity, whether bridging finance is an option and the cost of temporarily holding two properties.
It is also worth getting a realistic appraisal of your current home rather than building your next purchase around the highest possible sale price.
Having the numbers clear upfront gives you more flexibility and helps you make decisions without unnecessary pressure.
How a buyer’s agent can help
Upsizing involves more moving parts than a standard purchase.
At Setlr Buyers Agents, we help clients understand what their budget is likely to secure, assess on and off-market opportunities and negotiate both price and settlement terms with the bigger picture in mind.
We also work closely with the sales agent handling your current home so both sides of the move are coordinated as effectively as possible. That can include aligning campaign and settlement timeframes, understanding how the sale is progressing and negotiating purchase terms that give you the flexibility you need.
The goal is not simply to buy another home quickly. It is to make sure the pressure of selling does not cause you to compromise on what you buy next.
Planning to upsize in Brisbane?
If you are thinking about selling your current home and buying something larger, it can help to work out the buying strategy before your current home hits the market.
Speak with Setlr Buyers Agents about your plans and we can help you understand what is available, what your budget is likely to secure and the best way to approach your move.
Call 1300 1SETLR, email hello@setlr.com.au, or reach out through our online contact form to get started with experienced buyers agents who are here to help you buy with confidence.