Upgrading or downsizing your home can be one of the most stressful property transactions a buyer will ever navigate. Should you sell first and then buy? Or buy first and hope the sale of your existing property falls neatly into place?

In this episode of The Property Trio, Mike Mortlock, Cate Bakos and David Johnston unpack the delicate dance between buying and selling, particularly in a buyer-friendly market where conditions can create some interesting opportunities for upgraders.

Cate explains why a buyer’s market can favour people moving up the property ladder, particularly when higher-value properties are experiencing greater price falls than lower-value stock. But she also highlights why the strategy isn’t as simple as taking advantage of a market discount. The scarcity of the property you want to buy, and the difficulty of selling your existing property, are both critical considerations.

The team explores bridging finance, including how it works, who is likely to qualify and why buyers should never simply assume it will be available. They discuss equity requirements, serviceability, peak debt and the importance of stress-testing a delayed sale.

They also examine the risks of making an offer subject to sale, why this can significantly limit your purchasing opportunities, and alternative strategies including longer settlement periods, rent-back arrangements and early access.

Settlement timing emerges as one of the most overlooked parts of the entire process. Cate shares examples of creative negotiations that have helped buyers and sellers bridge the gap between transactions, while Dave explains how careful financial planning can reduce unnecessary stress.

The episode also covers loan porting, contingency planning and the risks of being caught between two properties.

For anyone contemplating an upgrade, downgrade or simultaneous sale and purchase, this episode provides a practical framework for understanding the risks, planning ahead and avoiding the kind of pressure that can lead to a poor property decision.

And….. our gold nuggets! “For someone trying to make a decision now… buy, hold or wait…. what would you suggest they do?”

Cate Bakos’s gold nugget: Carefully select your selling agent. Finding someone who will be honest, conservative and open with their appraised value is critical. “The worst thing you can do is go with the agent who tells you the biggest price, or what you want to hear.”

Dave Johnston’s gold nugget: Get the planning right up front! Spend time with your strategic mortgage broker and get all of the steps right from the start, including the due diligence. “You need to get all your ducks in a row. And when you don’t, that’s when stress will occur.”

Mike Mortlock’s gold nugget: “You need to weigh up the risk, and then the likelihood.” Mike reminds listeners of the balance that they must strike when deciding whether to transact in the same market.

Related episodes:

#22: Why the family home is often the biggest piece of the investment puzzle

#128: Upgrading and Planning for the Long-Term Home

#160: Top tips for purchasing in a cooling market – Listener question!

#261: Recovering from Buying a Lemon

#315: The Family Home Puzzle: Balancing Budget, Space, School Zones & Selling Properties to Upgrade

Upcoming ep: #375 – July Monthly Market Update

Resources: Read Cate’s blog on this topic here.