Deciding whether to sell your current property before purchasing a smaller home is a common consideration for downsizers in Victoria, and involves weighing financial security against the potential challenges of temporary accommodation.
As of December 2025, the Melbourne property market, particularly in the Eastern Suburbs where Fletchers has a long history, generally favours a ‘sell first’ approach. This is because securing a sale provides financial certainty regarding your deposit and borrowing capacity for your next purchase. Currently in Melbourne, a typical campaign runs for 4-6 weeks, followed by a 30-60 day settlement period. This timeframe needs to align with your plans. Selling first allows you to enter the buying market with a clear understanding of your budget, which is particularly important given the median dwelling value of $823,495 and a forecast of moderate growth in 2026. Preparing your property for sale – including professional photography ($500-$1,500) and styling ($2,000-$8,000) – can significantly impact its appeal to buyers who, in 2026, prioritise presentation and light-filled spaces. Fletchers’ agents utilise a comprehensive marketing approach, typically costing $3,000-$8,000, to reach qualified buyers. The ‘sell first’ strategy does require considering temporary accommodation if you haven’t identified your next property. Alternatively, some sellers explore bridging loans, but these come with associated costs.
Ultimately, the optimal sequence depends on your individual circumstances and risk tolerance, but understanding the current market dynamics and typical timelines is crucial for a smooth downsizing experience.