What Is an Extended Settlement – And How Can It Help Downsizers?
For many Australians thinking about downsizing, one of the biggest concerns is getting the timing right. You want to secure your next home but also sell your current one without the chaos of rushed decisions or temporary living arrangements. One often-overlooked tool that can make the transition smoother is an extended settlement.
In this blog, we’ll explain what an extended settlement is, how it works, and why it can be especially helpful for downsizers navigating a sale and purchase at the same time.
What Is an Extended Settlement?
In most property transactions, the settlement period, the time between signing the contract and officially transferring ownership, lasts between 30 to 60 days.
An extended settlement simply lengthens that period, often to 90 days or more, depending on what the buyer and seller agree to. This extra time can be a valuable buffer that allows sellers to line up their next move, and buyers to get their finances or logistics sorted. It’s a flexible and negotiable option that can make downsizing much easier.
The Difference Extended Settlement Can Make
Gives You Time to Find Your Next Home
One of the biggest stressors when selling a long-term family home is not knowing where you’ll go next. With an extended settlement, you can sell your property and secure a great price, without rushing into your next purchase.
This extra time gives you breathing room to find the right place to suit your lifestyle, whether that’s a low-maintenance unit, a sea-change, or a tree-change retreat.
Avoids the Need for Temporary Accommodation
If your current home settles before you’ve found your next one, you could be left scrambling for a short-term rental, juggling storage, or even living with family. An extended settlement reduces the chance of that happening, giving you time to move just once instead of multiple times.
More Control, Less Pressure
Moving is a big deal, especially when you’re downsizing after many years in one place. An extended settlement gives you more control over your timeline. You can sort, donate, declutter, and pack at your own pace, without feeling like you’re living in fast-forward.
Case Study: How an Extended Settlement Helped Margaret Make the Right Move
The cases in which extended settlement proves beneficial includes the story of Margaret, a 68-year-old retiree from Sydney’s North Shore, had lived in her family home for over 30 years. After her children moved out and the upkeep became too much, she decided it was time to downsize to something more manageable and closer to her grandchildren.
While her home attracted strong interest quickly, Margaret hadn’t yet found her ideal next property. She was worried about having to move into temporary accommodation or rushing into a decision she might later regret.
With support from her agents, Margaret was able to negotiate a 90-day extended settlement with her buyers. This gave her the breathing space to explore properties without pressure. Once, she found the perfect place that she had been looking for and was able to start the transition. With the extended timeframe in place, Margaret was able to coordinate both settlements smoothly, move once, and make a calm, well-planned transition to her new home.
How to Negotiate an Extended Settlement
The good news? Extended settlements are more common than you might think, especially in a balanced market. In today’s market, many buyers are flexible and open to longer settlement periods if it means securing the home they really want.
Your real estate agent plays a key role here. A good agent will not only help you negotiate the terms but also match you with the right buyer who is willing to work with your ideal timeline.
And on the flip side, if you’re the buyer, you can also request an extended settlement from the seller. With the right agent, these timelines can often be aligned on both sides for a seamless transition.
How Extended Settlements Compares to Bridging Finance
Bridging finance is a short-term loan that allows you to purchase your new home before you’ve sold your current one. Extended settlements and bridging finance are both tools designed to solve the same challenge: timing your sale and purchase without added stress. While they serve a similar purpose, they work in very different ways. Here are some key differences:
| Bridging Finance | Extended Settlement |
| Involves a short-term loan to buy before selling | Involves negotiating more time to sell or buy |
| Requires lender approval and borrowing capacity | No extra lending or financial products needed |
| Useful when you’ve found a new home first | Ideal when you’ve sold but need more time to buy |
In some situations, using both options together can provide the perfect solution, especially if your next home is secured but you still need time to finalise your sale, or vice versa. The key is partnering with the right professionals who can align both strategies to ensure a smooth and stress-free transition.
How iDownsize Can Help
At iDownsize, we’re all about helping homeowners transition into their next stage of life with less stress and more confidence.
We connect you with real estate agents who understand the needs of downsizers and who can help negotiate extended settlements, find flexible buyers, and source off-market properties that suit your lifestyle and timing.
Whether you need more time to prepare your current home for sale or some extra room to secure your next property, our network of agents is here to help make the process as smooth as possible.
Thinking of Downsizing?
If you’re planning your next move and want to explore options like extended settlements or off-market opportunities, talk to us at iDownsize. We’ll connect you with the right agents who can work around your timeline, not the other way around.