Selling your property before finding a new home can be a strategic move to increase the chances of securing your dream home when you discover it. However, this approach may also lead to rushed decisions, considering the need to limit time spent in temporary living arrangements. Many opt for the alternative: finding a new home before listing their current one for sale.


Intricacies of Selling

For those who choose to sell after finding their dream home, it’s important to note that there will likely be a suspensive condition in the Offer to Purchase (OTP). This condition stipulates that the sale of the new home will proceed only after the current property has been sold. In competitive scenarios with multiple offers, sellers might favour buyers who already have financing in place.

Homeowners relying on the sale of their current property to cover bond registration fees and transfer duties should be aware that these costs must be paid upfront. To secure funds before the sale, homeowners may consider setting up a bridging finance option on their current home loan. This option depends on factors like property equity, the seller’s credit record, and expected cash inflow. However, it’s crucial to budget for interest and administrative costs associated with this arrangement.


Streamlining the Process

An alternative approach is to sell the current home before making an offer on a new one. While this may streamline the process, homeowners must have a contingency plan for temporary living arrangements if they can’t find a new home before moving out.


Options for temporary living include:

Paying Occupational Rent: Remaining in the current home after selling to avoid moving costs and the hassle of relocating twice.

Staying with a Friend: This option minimizes rent expenses, but it involves moving more than once and may require additional costs for storage.

Short-Term Rental: Finding a temporary rental presents uncertainties regarding the duration needed, potential moving costs, and the need for storage if the rental space is smaller than required.


While the process may seem complex for first-time sellers, leveraging the current home’s equity to purchase a new one is a common practice. Financial institutions, transferring attorneys, and real estate professionals are experienced in handling such transactions. Homeowners in this situation should feel confident and at ease, especially with a reputable real estate professional guiding them through the process.