Selling first gives you a known budget and a strong negotiating position but risks leaving you without a home, while buying first secures the property you want but exposes you to holding two mortgages if your sale takes longer than expected. In Perth’s current market, with listing numbers well above last year’s, the balance has shifted toward selling first for most owners.
This is the decision that causes more stress than any other part of moving house, and it is usually made under time pressure with incomplete information. This guide sets out what each path actually risks, how Western Australian contracts let you manage the gap, and the questions worth answering before you commit either way.
Should you sell first or buy first?
Sell first if certainty about your budget matters more than certainty about the property. Buy first only if you can genuinely carry both properties, or you have a contract structure that protects you.
| Sell first | Buy first | |
|---|---|---|
| You know your budget | Yes, exactly | No, only an estimate |
| Negotiating position when buying | Strong, you are effectively a cash buyer | Weak, your offer usually needs a condition |
| Negotiating position when selling | Normal | Weaker, because you are now under time pressure |
| Main risk | Nowhere to live if you cannot find a property in time | Carrying two properties, or selling under pressure |
| Cost if it goes wrong | Short-term rental, storage, moving twice | Bridging finance costs, or accepting a lower sale price |
| Suits | Most owners, and anyone whose purchase depends on the sale proceeds | Owners with substantial equity, a second income source, or a very specific target property |
The asymmetry is worth noticing. If selling first goes wrong, you rent for a few months. If buying first goes wrong, you are negotiating the sale of your home from a position every buyer can see you are in.
Why does the current Perth market favour selling first?
Because there is more competing stock than there has been in years, which makes a sale less predictable and a purchase easier to find.
REIWA’s Perth metro snapshot for the week ending 20 September 2026 counted 7,755 properties listed for sale, against 2,929 in the same week last year, with weekly sales at 634 compared with 862 (REIWA Perth market insights, accessed 22 September 2026).
Read that from both sides of your move. As a seller, you are one of many, so you cannot assume a fast, above-expectation result. As a buyer, there is more choice than there was, so the fear of missing the only suitable property has less force than it did in 2024. Both readings point the same way: get the sale resolved, then buy with a known number.
That logic reverses in a market with scarce stock and rising prices, which is exactly the market most “buy first” advice was written for. Check which market you are actually in before taking general advice.
How do WA contracts let you manage the gap?
Western Australian contracts handle this through special conditions, and two of them matter here: making a purchase subject to the sale of another property, and the 48-hour clause that usually comes with it.
Consumer Protection WA lists both among the special conditions that can be added to an Offer and Acceptance. A contract can be made subject to the sale of another property, and a 48-hour clause allows the seller to continue marketing their property where the existing contract is subject to the sale of another property.
Here is what that means in practice if you buy first with a subject-to-sale condition:
- Your offer is accepted, but the seller keeps marketing the property.
- If another buyer makes an acceptable offer, you are given notice, typically 48 hours, to either remove your condition or step aside.
- Removing the condition means committing to the purchase whether or not your own home has sold.
So a subject-to-sale offer is real protection, but it is not a reservation. It holds the property only until someone unconditional turns up.
All amendments and extra conditions must be signed and dated, and Consumer Protection WA advises that conditions be precisely worded and drawn up with expert advice. Ask your settlement agent or lawyer to explain the exact notice mechanics before you sign, because the clause’s value depends entirely on the wording.
What is bridging finance and when does it help?
Bridging finance is a short-term loan that covers the gap between buying a new property and selling your existing one, and it is a tool for timing, not for affordability. It is genuinely useful in a narrow set of circumstances and expensive outside them.
The general shape, which varies by lender:
- The lender advances funds against both properties for a limited period.
- Interest accrues on the combined debt, sometimes capitalised rather than paid monthly.
- The loan is repaid when your existing property settles, and the residual becomes your ongoing mortgage.
- There is normally a maximum bridging period, after which the terms change.
The risk is straightforward. If your existing property takes longer to sell than the bridging period allows, or sells for less than assumed, you absorb the difference while paying interest on both. In a market with elevated listing numbers, that assumption deserves scrutiny rather than optimism.
Interest costs also move with the broader rate environment; the RBA publishes the current cash rate and its history. Speak to a mortgage broker or your lender about whether bridging is available to you and what it would actually cost, before you rely on it as a plan.
How do you align two settlements?
You align them by negotiating the settlement dates as terms of each contract, not by hoping they land near each other. Settlement dates are negotiable, and this is the single most useful lever you have.
Consumer Protection WA notes that the settlement date is set in the contract of sale and the settlement period is usually 30 to 90 days. That is a wide window, and it exists to be used.
Practical approach:
- Raise the timing requirement before an offer is accepted, on both transactions. It is far easier to set a date than to change one.
- Use the same settlement agent for both where possible, so one party is coordinating the whole sequence.
- Build in a buffer. Same-day settlements are possible but leave no room if a lender is slow.
- Consider a short licence to occupy if the dates cannot align, negotiated in writing rather than assumed.
- Plan for the penalty risk. If a buyer, their settlement agent or lender cannot meet the agreed date, the buyer may owe penalty fees to the seller. The same exposure applies to you on your purchase.
What should you work out before deciding?
Work out your actual net proceeds, your genuine borrowing capacity and your fallback accommodation, because the decision is really about which risk you can absorb.
Before you commit either way, get clear on:
- Net proceeds from the sale, not the sale price. Selling costs come out first; our guide to the costs of selling a house in WA lists what to subtract.
- What you can borrow, confirmed with a broker or lender rather than estimated.
- Transfer duty on the purchase, which is payable on the property you buy. The WA Government publishes transfer duty rates and calculators.
- Where you would live if the sale settles before you have bought. A short lease and storage is a real cost, but it is a known one.
- How long you could carry both, in months, with a specific number attached.
- Whether your purchase target is genuinely scarce, or whether comparable properties come up regularly.
An owner who can answer all six usually finds the decision makes itself.
Frequently asked questions
Is it better to sell first or buy first in Perth right now?
Selling first suits most Perth owners in the current market, because listing numbers are well above last year and a sale is therefore less predictable than a purchase. Buying first makes sense mainly where you can comfortably carry both properties or your target property is genuinely rare.
Can I make an offer subject to selling my own home in WA?
Yes. Consumer Protection WA lists a contract being subject to the sale of another property among the special conditions that can be added to an Offer and Acceptance. Expect the seller to attach a 48-hour clause allowing them to keep marketing.
What is a 48-hour clause?
It is a special condition that allows a seller to continue marketing their property while under a contract that is subject to the buyer selling another property. If a better offer arrives, you are given notice to go unconditional or release the contract.
How long can I have between settlements?
Settlement dates are negotiated terms, and settlement periods are usually 30 to 90 days, so there is room to stagger them. Raise your required dates before an offer is accepted on either transaction.
Do I need bridging finance to buy before I sell?
Not always, but you do need a funded plan. Bridging finance is one option, as are a longer settlement on the purchase, a shorter one on the sale, or a subject-to-sale condition. Discuss the options with a broker before committing to a purchase.
What happens if my sale falls through after I have bought?
You remain contractually bound to the purchase. That is the core risk of buying first, and it is why the condition wording, the settlement dates and your fallback funding all need to be settled before you sign anything.
Work the two sides of the move as one plan
Buying and selling are usually treated as separate projects with separate timelines. They are one transaction with two contracts, and the decisions that matter, method of sale, price strategy and settlement dates, are made at the start.
Talk through the sale side first at a confidential appraisal, then look at how the buying process fits around it.
Call Brian on 0418 896 354 or email brianmcallister@theagency.com.au. Seven days, by appointment.
This article is general information for Western Australia and is not legal, financial or credit advice. Lending products, contract conditions and duty amounts vary. Obtain advice from your licensed settlement agent or lawyer, and your broker or lender, before signing or borrowing.