If you buy first, you know where you’re going, when and how much you’re paying for your new home. But the unknowns are… how long will it take to sell your old home and how much will you “net” from the sale?

On the other hand, those who choose to sell first have the benefit of knowing exactly how much cash they’ll net from the sale and therefore how much they can spend on a new home purchase.

So how do you solve the dilemma?

Firstly, be realistic about the value of your home. Contact your real estate agent and ask them to prepare an appraisal of your home to establish its approximate current market value.

The safest way to make a trade up move is to buy your new home “subject to” the sale of your current home. However, this strategy may be unacceptable to sellers.

A more realistic approach is to sell your current home first with a provision in the contract that you may need a longer than normal settlement or perhaps a rent-back option until such time as you find a new home.