One question I get, sometimes by email and sometimes by phone or in person, concerns the paralysis some people feel when they want or need to buy a new home but they're afraid to look for fear they'll fall in love with a house and theirs hasn't been sold. Or they're afraid to list their home for sale before they have found their new home for fear they'll end up homeless.
Here is a sample of the kind of questions I get:
I want to buy a larger home because we are already crowded and now my elderly father is going to be moving in with us. In order to buy, I have to sell my current home, What happens if I find the house I want to buy but my house hasn't sold yet? I can't afford to pay two mortgages.
First of all, you should know that yours is not a unique dilemma.
Many people who want to move to a different home are in the same situation: they have to sell their current home in order to buy another one.
I recommend that you get your current home ready to list, making sure that it is showing-ready. Meet with your Realtor who can walk through your home with you and advise you what to change and what not to change so that you have the best chance of getting a quick sale without spending a ton of money.
She can also research and show you what you can probably expect to list your home for successfully. and can also give you an estimated net sheet to let you know the approximate net proceeds you will have available to make a down payment or changes on another home.
Your lender (either the one on your current home or another one you want to use for your purchase) can pre-approve you for a new loan of some amount so that you will know what price range you should be considering for your new home. Getting this done in advance can help your transaction move more smoothly, as you will be pretty sure that you will be able to close on the house you want.
Now you are ready to list your home and immediately begin the search for your new one.
If you find your new perfect home, you can 
make close of that escrow contingent on selling your current one. To be honest, such a contingent offer may not be able to compete with a like offer without such contingency, so you may have to make an offer that is higher than list price to be more competitive.
At the same time you may want to lower the list price on your current home if you are not getting any activity. Make sure your Realtor is aggressively marketing it, both on line and personally. Such things as open 
houses, broker tours, distribution of flyers to real estate offices, potential buyers and neighbors can all help, as well as on line advertising on as many sites as practical.
If you receive an offer on your home before you have found your new home or before you've reached an agreement, you can request a longer escrow on the sale, and if the buyer balks because he is anxious to move in and may fear you will keep asking for more extensions, you may need to offer some benefit to him in exchange. For instance, offering to pay a daily penalty for every day beyond the initial extension. Or you might decide that it would be better for you to move out to temporary quarters while you continue the search or back out of the contract and hope for a new buyer.
It is important, however, that you have notified the buyer up front that you aren't yet ready to move, so that the 
agreed upon closing date is contingent on your finding a new place.
The main thing for you to do is to engage the services of a full time Realtor who will work hard on both your sale and helping you to find and buy your new place. If you will be moving out of the area, make sure that your Realtors in each area are communicating with you and with each other so the two transactions can be coordinated.
So the short answer to your concerns is that it takes organization, but it is done all the time and with the help of your Realtor and your lender, you can do it too!
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Susan Neal
Realtor/ Broker
Century 21 Noel David Realty
Full time real estate services in Fair Oaks CA, with friendly professionalism, 30+ years experience.
I work hard to give my buyer or seller a low-stress transaction.
"Happy clients make me happy."
For all your real estate needs or questions, call me at (916)705-8951or visit my website at www.SusanNealFineProperties.com.
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