Downsizing in Sydney: Who Is Coordinating the Whole Move?

Downsizing can involve two property transactions, several professional advisers and one physical move.

There may be a selling agent managing the existing home, another selling agent representing the vendor of the next property, a solicitor or conveyancer handling each contract, a finance adviser dealing with funding, and removalists working towards a fixed moving date.

Each professional may perform their own role well.

The difficulty is that no single person is automatically responsible for coordinating the whole property transition from the homeowner’s perspective.

That responsibility often falls back on the client—at the same time they are preparing a long-held family home for sale, attending inspections, comparing properties and making significant financial decisions.

A more considered downsizing process starts by treating the sale and purchase as one connected plan rather than two separate transactions.

The missing role in many downsizing moves

The selling agent for the current home is engaged to sell that property.

Their responsibilities generally include recommending a campaign, preparing the property for market, attracting buyers, providing feedback and negotiating with prospective purchasers.

The selling agent for the next property represents a different vendor.

The solicitor or conveyancer advises on the legal documents. The finance adviser addresses funding. Other specialists may inspect the property or provide financial, tax or retirement-living advice.

What may still be missing is someone considering how all these property-related decisions fit together for the downsizer.

Questions can arise such as:

• When should the search for the next home begin?

• How ready should the existing property be before an offer is made elsewhere?

• What happens if the current home sells faster than expected?

• What settlement flexibility is required?

• Which selling agent is best suited to the client and the property?

• How much pressure will a fixed sale date place on the next purchase?

• Who is representing the client when negotiating for the next home?

These are not necessarily problems with any individual professional.

They are coordination questions.

Begin with a transition plan, not just a sales appraisal

A downsizing conversation often begins with the likely value of the existing home.

That figure is important, but it is only one part of the decision.

Before appointing a selling agent or committing to a campaign timetable, it is useful to establish:

• what must happen before the current home can be listed;

• when the next-property search should begin;

• how dependent the purchase budget is on the sale result;

• whether temporary accommodation is acceptable;

• how much settlement flexibility may be required;

• which events would create unacceptable financial or practical pressure; and

• who will coordinate communication between the relevant parties.

The purpose is not to predict every event.

It is to understand where the sale and purchase depend on one another before either transaction develops momentum.

Select the selling agent for the transition—not only the appraisal

Homeowners may invite several local agents to appraise the existing property.

It is natural to focus on the estimated selling price. However, the agent giving the highest appraisal is not necessarily the best fit for the property or the broader move.

A selling-agent selection process may also consider:

• recent comparable sales relevant to the property;

• the proposed auction or private-treaty approach;

• commission and marketing costs;

• how the agent intends to communicate campaign feedback;

• who will manage the campaign day to day;

• experience with the particular property type;

• the proposed preparation and launch timetable; and

• whether the agent’s communication style suits the client.

For a downsizer, pacing and communication can be particularly important.

The client may be sorting through years of possessions, consulting family members, arranging minor works or waiting for greater clarity about the next purchase. An aggressive campaign timetable may not be appropriate simply because it is operationally convenient for the agent.

MURRAY LEE does not act as the selling agent for the existing home.

Where included within the agreed service, we can help identify and compare suitable selling agents, review their proposals at a general level and support the client in making a considered appointment.

The selected selling agent remains responsible for marketing, negotiating and selling the property.

Keep the next-property purchase independently represented

The existing-home sale and the next-home purchase are connected, but they involve different agency relationships.

The agent selling the next property represents its vendor.

A downsizer may therefore be dealing with one selling agent as a vendor and another selling agent as a buyer—sometimes during the same week.

The client needs independent advice on the purchase, including:

• whether the property fits the agreed brief;

• how it compares with relevant alternatives;

• the available market evidence;

• material property and transaction risks;

• the proposed price boundary;

• the contract and due-diligence position;

• offer or auction strategy; and

• whether the transaction timing works with the existing-home sale.

The objective is not simply to complete both transactions.

It is to prevent pressure created by one transaction from weakening the client’s decision-making in the other.

Run the sale and purchase as two parallel workstreams

A coordinated downsizing move does not necessarily mean that every task happens at the same time.

It means that work on one side takes account of what is happening on the other.

Existing-home workstream

This may involve:

• selecting the selling agent;

• preparing the property;

• confirming the campaign strategy;

• reviewing the agency agreement;

• establishing the likely launch date;

• considering the preferred contract and settlement position; and

• monitoring campaign progress.

Next-home workstream

This may involve:

• confirming the Buyer Brief;

• beginning the property search;

• monitoring suitable listed and pre-market opportunities;

• arranging inspections;

• preparing finance and professional advisers;

• assessing suitable properties; and

• establishing the buying and negotiation framework.

The two workstreams should communicate with each other.

For example, the availability of suitable replacement properties may affect when the current home should be launched. A strong offer on the existing home may change the buyer’s certainty or timing. The contract terms on the next property may affect the settlement position sought on the sale.

The plan may change as new information becomes available. Coordination allows those changes to be made deliberately.

Use decision points rather than one rigid timetable

A downsizing move rarely follows one perfectly predictable sequence.

A practical plan can instead establish several decision points.

Before appointing the selling agent

Confirm what the next move is intended to achieve, how the agent will be selected and whether the next-property search should begin immediately.

Before launching the existing home

Review the likely purchase budget, current replacement-property supply, finance position and acceptable settlement scenarios.

Before making an offer on the next property

Confirm the available evidence, due diligence, funding, timing and maximum price authority.

Before accepting an offer on the existing home

Consider the proposed price together with deposit, settlement timing and any conditions that may affect the next move.

Before exchange of contracts

Ensure the client understands the legal, financial and practical consequences of the particular transaction.

This structure allows the process to adapt without becoming directionless.

Where unnecessary pressure usually appears

Pressure in a downsizing transaction is often created by timing rather than by the property itself.

It may arise when:

• the existing home sells before a suitable replacement is found;

• the next property requires an earlier settlement than expected;

• a campaign proceeds before the client is ready;

• finance arrangements depend on sale proceeds;

• a preferred property is going to auction;

• two contracts require decisions within a short period;

• temporary accommodation has not been considered; or

• one party assumes another professional is managing a task.

Not every timing gap can be avoided.

However, the risk can often be reduced when responsibilities, authority and communication are established early.

What coordinated downsizing support may include

Depending on the agreed scope, MURRAY LEE’s Downsizing & Transition Support may include:

• developing the next-home Buyer Brief;

• searching and assessing suitable properties;

• monitoring publicly listed, pre-market and selected off-market opportunities;

• arranging inspections;

• coordinating independent due diligence;

• representing the client in private negotiation or at auction;

• assisting with the selection of a selling agent for the existing home;

• reviewing proposed commissions, marketing costs and campaign approaches at a general level;

• communicating with the appointed selling agent and other professional advisers; and

• coordinating key timing through to exchange of contracts for the next property.

The service does not make MURRAY LEE the selling agent for the existing home.

It provides a central property-focused point of coordination while the appointed selling agent, legal advisers, financial advisers and other specialists continue to perform their respective roles.

What the service does not replace

A coordinated property plan does not replace independent professional advice.

Depending on the client and proposed move, advice may be required from:

• a solicitor or conveyancer;

• a financial adviser;

• an accountant or tax adviser;

• a lender or finance broker;

• a building, pest or strata specialist;

• a suitably qualified valuer;

• a retirement-living specialist; or

• an aged-care or health professional.

MURRAY LEE can help identify the area requiring further review and assist with coordination, but the final professional advice remains the responsibility of the appropriately qualified adviser.

MURRAY LEE’s fee

MURRAY LEE’s fee for Downsizing & Transition Support is:

1.5% of the purchase price of the next property, plus GST.

The fee is payable when contracts for the next property are exchanged.

There is no additional MURRAY LEE fee for the selling-agent selection and transition-coordination support included within the agreed service.

The appointed selling agent’s commission, marketing expenses and other sale-related costs remain payable directly by the client.

Fees charged by legal, financial, building, retirement-living or other independent advisers are also separate.

The precise service scope, fee, authority, responsibilities and completion point are confirmed in writing before formal work begins.

One move should not require the client to become the project manager

Downsizing can involve a meaningful lifestyle change, but it is also a practical property exercise involving several parties and interdependent decisions.

The existing-home sale should not create unnecessary pressure to buy.

The next-property search should not proceed without regard to the sale.

And the client should not have to coordinate every property-related task alone simply because each adviser is responsible for only one part of the process.

One move. Two transactions. One coordinated plan.

For guidance on defining what the next home should provide, read Downsizing in Sydney: Start With the Next Home, Not Just the Sale.

To discuss the coordination of your sale and next-property purchase, visit the MURRAY LEE Contact page.

This article provides general information only and does not constitute legal, financial, tax, lending, retirement-living, aged-care or formal valuation advice.