A Checklist for Downsizing Sellers

Downsizing is rarely just about finding a smaller property. It usually involves selling a home you may have lived in for decades, working out what to keep and what to let go, and coordinating the sale with a purchase elsewhere, sometimes in a different city or state. This checklist works through the practical and legal steps involved, so you can approach the process with a clear plan rather than tackling everything at once.

Decide on Your Sequence: Sell First or Buy First

The first decision to make is whether you will sell your current home before securing your next property, or the reverse. Selling first gives you certainty about your available funds and avoids the risk of holding two properties at once, but may mean a period of temporary accommodation if your next home is not ready. Buying first gives you more certainty about where you are moving to, but requires either bridging finance or confidence that your sale will settle in time. There is no single right answer, and the best approach depends on your finances, the local market, and how much flexibility you have around timing.

• Work out whether bridging finance is realistic if you want to buy before selling.
• Consider a longer settlement period on your sale to give yourself more time to find your next home.
• Talk to your conveyancer about aligning settlement dates if you are doing both at once.
• Factor in temporary accommodation costs if there is likely to be a gap.

Get a Realistic Read on Your Current Home's Value

Before committing to a plan, get an independent read on what your current home is likely to sell for, rather than relying on assumptions based on when you purchased it or general market commentary. This shapes almost every other decision, from how much you can spend on your next property to whether downsizing actually frees up the funds you are expecting. A residential sale in a strong local market can move quickly, so it is worth having your paperwork, including your Section 32 or equivalent vendor disclosure document depending on your state, prepared in advance so you are ready to list as soon as you decide to proceed.

Understand the Tax and Grant Implications

If your current home has been your main residence, selling it will generally not trigger capital gains tax, though this depends on your specific circumstances and any period the property was used for other purposes, such as being rented out. Some states also offer stamp duty concessions specifically for pension-age or senior downsizers on their next purchase, alongside the standard first home buyer concessions that would not apply here. Because eligibility rules and thresholds vary and this touches on tax treatment, this is general information rather than tax advice, and it is worth discussing your specific position with an accountant before you list. The ATO's guidance on the main residence exemption is a useful starting point.

Plan the Practical Side of Downsizing Early

Moving from a larger property to a smaller one usually means letting go of possessions that will not fit, and this can take considerably longer than people expect, particularly with a home full of decades of belongings. Starting this process well before you list, rather than in the final weeks before settlement, makes the physical move far less stressful. It also gives you time to properly consider what should go to family members, what can be sold, and what needs professional removal, rather than making rushed decisions under time pressure.

Review the Contract of Sale Carefully

Once you have an offer, work through the contract terms with your conveyancer, paying particular attention to the settlement period and any special conditions relating to fixtures, inclusions, or your ability to remain in the property for a short period after settlement if needed. If you are coordinating a purchase at the same time, a slightly longer or more flexible settlement period on your sale can make a real difference to how smoothly the transition goes. It is worth raising this preference with your agent before the contract is finalised rather than trying to renegotiate it afterwards.

Line Up Your Next Purchase

Whether you are moving into a smaller house, a townhouse, or an apartment, have your conveyancer review the contract and any strata or owners corporation records before you commit, since these documents reveal ongoing costs and any planned works that could affect your decision. If your next home is in a different state to your current one, be aware that stamp duty, cooling-off periods and settlement conventions differ, and your conveyancer will need to be licensed to act in that jurisdiction. Our guide on using a conveyancer licensed in a different state covers this in more detail if your move crosses state lines.

Coordinate Settlement Dates Where Possible

If you are selling and buying close together, ask your conveyancer to communicate directly with the conveyancer or solicitor on the other transaction to align settlement dates as closely as practical. Even a short gap of a few days can sometimes be managed with short-term storage or accommodation, but larger mismatches are worth identifying and planning for well ahead of time rather than discovering them in the final week. Clear communication between the two transactions is one of the most valuable things a conveyancer does in a downsizing scenario, since it reduces the chance of a last-minute scramble.

Think Through the Emotional Side as Well as the Logistics

Downsizing often follows a significant life change, whether that is children moving out, retirement, or the loss of a partner, and it is worth acknowledging that the process can feel very different from an ordinary sale. Giving yourself realistic time frames, rather than rushing to match a market window, tends to lead to better decisions about both price and what to keep. Talking through the plan with family members early, particularly if they are helping with the physical move or storing belongings, also helps avoid last-minute disagreements once a settlement date is locked in.