Balmain Downsizers: How a Structured Leaseback Let Them Sell First, Move Later
Capsule Answer
A retired couple in Balmain needed to sell their 4-bedroom terrace to fund a smaller apartment — but they could not move out for another 9 months. A traditional agent would have listed publicly with a 60-day settlement, leaving them stranded. Instead, they sold off-market with a structured leaseback clause, achieving $1.78M with zero open homes and zero commission.
The Situation
Tony and Marie had owned their Balmain terrace for 22 years. The house was paid off, the kids had moved out years ago, and they had already put a deposit on a downsizer apartment in Birchgrove — but that build would not finish for another 9 months.
Selling on the open market would mean:
- A standard 6–8 week auction campaign with weekend open homes
- A typical 60- to 90-day settlement
- Agent commission between 1.8% and 2.5% plus GST — roughly $32,000 to $44,500 on their expected sale price
- Having to find temporary rental accommodation for the gap period
They did not want strangers walking through their home. They did not want to pack up twice. And they did not want to hand over $40,000+ to an agent for what is essentially a simple transaction.
What They Needed
- A buyer who would settle in 9 months — not the usual 60 or 90 days
- Zero public exposure — no signs, no open homes, no online listings
- A firm, unconditional cash contract so there was no financing risk dangling for months
- To stay living in the house until their apartment was ready
How the Off-Market Leaseback Worked
We found a buyer through our off-market network — a young family who had sold their Newtown terrace and wanted to upsize into Balmain. They did not need to move in immediately, which made a delayed settlement viable for both sides.
The contract was structured as a standard sale with two key clauses:
| Clause | Detail |
|---|---|
| Purchase price | $1,780,000 |
| Deposit | 10% ($178,000) — released to the vendors at exchange |
| Settlement date | 9 months from exchange of contracts |
| Occupancy during gap | Vendors remained as occupants — no rent payable, all outgoings (council, water, insurance) continued to be paid by the vendors |
| Early access | Buyer could enter for measurements and pre-renovation planning from 6 months |
| Subject to finance | No — cash settlement (buyer had sold their property) |
This structure gave both parties certainty:
- Tony and Marie stayed in their home, moved once (into their new apartment), and banked $89,000 in avoided agent commission
- The buyer locked in the property at a known price 9 months ahead with no competition and no auction risk
Auction vs Off-Market Leaseback: The Real Numbers
| Typical Auction Campaign | Off-Market Leaseback | |
|---|---|---|
| **Agency commission** | ~$35,600 (2% incl. GST) | $0 |
| **Marketing spend** | $4,000 – $8,000 (photography, signboard, digital ads, brochures) | $0 |
| **Open homes required** | 12–16 over 4 weeks | 0 |
| **Days on market** | ~45 days campaign + 90 day settlement = 135 days | 1 day (direct sale) + 270 day settlement |
| **Settlement certainty** | Subject to finance, building & pest, cooling-off (buyer can pull out) | Unconditional — buyer had sold, no finance clause |
| **Move** | Sell now → rent for 6+ months → buy later (two moves) | Sell now → stay → move once into new apartment |
| **Total agent + marketing cost** | ~$40,600 | $0 |
| **Net to vendor** | ~$1,739,400 | $1,780,000 |
Even with a longer settlement, the client came out $40,600 ahead versus the auction route — and skipped the stress of open homes entirely.
The Outcome
"We were dreading the idea of open homes. You hear stories of agents marching 50 strangers through your house every Saturday for a month, judging your furniture, your garden. This was the opposite — one inspection, one buyer, one firm contract. We kept living here like normal people right up until the week our apartment was ready." — Tony, Balmain vendor
The sale settled on schedule at 9 months. Tony and Marie moved directly into their Birchgrove apartment. The buyer renovated the Balmain house before moving in.
What This Means for You
If you are downsizing and your next property is not ready yet, you do not have to sell on the open market and rent in between. A structured leaseback — sometimes called a delayed settlement or vendor leaseback — lets you:
- Sell now at a known price
- Stay in your home for a fixed term (3 to 12 months is typical)
- Move once, not twice
- Pay zero agent commission
The key is finding the right buyer — someone whose timeline aligns with yours. That is what an off-market network does.
It is not a mass-marketed listing. It is a targeted match between seller and buyer.
Frequently Asked Questions
Recommended Further Reading
Sell Before You Buy — Downsizer Strategies
Practical strategies for downsizers who need to sell their current home before purchasing their next one.
Downsizing Your Home Quietly — Scenario Guide
Exit your family home without open homes, agent visits, or public listings.
Agent Commission vs Private Sale Costs
Side-by-side breakdown of what you actually pay under each route.
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