Why More Sellers Are Choosing Extended Settlements in 2025

In 2025, a growing number of property sellers are embracing extended settlements as part of their transaction strategy. Once considered niche, this approach is now becoming a standard option in many residential sales. So, why the shift? What’s prompting sellers to push for longer timelines between exchange and completion?

Let’s explore the practical, financial, and emotional motivations behind this trend.

1. Needing More Time to Find Their Next Property

In a market where listings are tight and competition for quality homes is high, many sellers are finding themselves needing extra time to secure their next residence. Extended settlements provide a crucial buffer, allowing them to search for a new home without the pressure of an immediate move-out date.

This is especially valuable for upsizers and downsizers navigating a competitive and time-sensitive buying landscape. The additional weeks—or even months—offered by extended settlements ease the logistical stress of simultaneous selling and buying.

2. Locking in Today’s Price While Delaying Handover

With property prices fluctuating in response to interest rates, economic forecasts, and seasonal market dynamics, some sellers are using extended settlements to their strategic advantage. By agreeing to a sale today but setting the settlement date months in the future, they can secure a favourable selling price while delaying the actual handover.

This tactic offers a hedge against future market volatility, enabling sellers to make confident decisions without rushing into their next purchase or investment.

3. Using Settlement Timing for Tax or Financial Planning

Another growing reason for extended settlements in 2025 is tax and financial planning. Sellers may request longer settlement periods to defer capital gains tax into the next financial year or align with other financial events, such as retirement or the maturity of an investment.

This approach is particularly common among older homeowners or those with complex financial arrangements. A longer settlement provides breathing room to plan asset transitions or consult financial advisers without compromising on the sale.

4. Attracting Buyers Who Also Need Flexibility

Sellers are also recognising that flexibility works both ways. By offering an extended settlement, they increase the appeal of their property to a broader range of buyers, particularly those who need time to organise finance, sell their own home, or move from interstate.

This added flexibility can be a key differentiator in competitive markets, and may even result in a stronger offer or smoother transaction. For example, extended settlement sales and purchases with Real Future have become increasingly common, catering to both sellers who need more time to vacate and buyers with delayed move-in requirements.

5. Preferring a Smoother, Less Rushed Moving Experience

Finally, many sellers simply prefer the slower pace and reduced stress that comes with a longer timeline. Moving house is a significant logistical effort. With more time to pack, organise, and coordinate removalists, sellers can avoid the frantic rush that often accompanies shorter settlement windows.

For older homeowners or families with children, the extra time allows for better planning and minimises disruption to their routines, particularly around school terms or work commitments.

What to Consider Before Agreeing to an Extended Settlement

While extended settlements offer flexibility and strategic benefits, they also require careful planning. Sellers should consider potential risks such as:

• Buyer financing delays or unexpected changes in circumstances
  
• The possibility of market shifts during the extended period
  
• The need for a well-drafted contract that protects both parties
  
• Whether temporary rental or licence agreements are needed if they stay in the home longer
  
• Exposure to increased settlement risk as timeframes stretch
  

Legal and financial advice is essential when negotiating non-standard settlement terms. Understanding the implications on timelines, tax outcomes, and buyer obligations can ensure a smoother and more secure transaction.

Longer Settlements, Smarter Moves

Extended settlements are no longer just a contractual footnote—they’re a strategic choice for today’s sellers. Whether it’s for logistical ease, financial benefit, or broader market flexibility, more homeowners in 2025 are discovering the advantages of longer timelines. As the property landscape continues to shift, expect extended settlements to remain a key part of how homes are bought and sold.