Whether you are in a situation in which you have to move, or in which you want to move, trying to buy a new home before your current home sells can be a daunting time in your life.

What if it takes longer to sell your current home than you hoped? What if you get less money from the sale of your home than you expected? Understandably, these are common concerns.

According to HomeGain real estate agents, in the first quarter of 2008, the average length of time it took to sell a home was 216 days. That is slightly over seven months from the moment a homeowner selected an agent until close. This clearly reflects that markets across the country this year are not in favor of homeowners who are in a hurry to sell.

Many markets are buyer's markets, however, plus there are other upsides to moving forward with a home transaction this year.

To help make the process and transition a smoother one, here are things you'll want to consider before jumping into either sale:

Timing

Try to map out when and where you'll be moving the best you can. Seasons of the year may affect how fast you can sell your home. They may also affect how much competition from other home buyers you'll face trying to buy a home. Spring and summer are usually the peak seasons to buy or sell a home.

Market conditions will also affect both transactions. Some markets will be more competitive than others depending on existing supply and demand. As I mentioned earlier, many markets are buyer's markets, which plays favorably on the buyer's side for choice and price.

Mortgage rates continually fluctuate as well. If the current rates don't meet your liking, you may try waiting for rates to decrease. Be warned, though, this strategy could back fire as rates may increase. Speak to your real estate agent and do some research online to help you determine if existing market conditions are favorable for buying or selling.

The Transition

Are you ready to make the big move - can you be ready? Moving just yourself can be a big undertaking. Moving your entire family means a whole lot more. If you sell before you buy, you and your family could end up, well, homeless - unless you have a well laid-out plan.

Here are some ideas to ease the move from old to new.

• Arrange a place to stay between moving from your old home to your new home. If you decide to move out so you can professionally stage your home for sale, you'll need a back-up place to live if only temporarily. Realtors® highly recommend staging, which can increase the value of your home by thousands of dollars and help it sell faster (see HomeGain's free home seller tool, "Home Sale Maximizer", www.homesalemaximizer.com).
• If you prefer not to stay with friends or your in-laws, look into residence hotels that offer temporary housing. This type of housing is often found in centrally located areas with shopping, restaurants and easy freeway access.
• Rent a public storage unit for all your extras.
• Make plans for your kids, including enrollment in school, sports and clubs.
• Communicate expectations clearly to the family to help dissipate some of the stress.
• Consider special needs of any pets.

Finances

Take a hard look at whether or not you have the financial resources to cover this type of situation before you commit. What is your available cash position for a down payment?

If you buy a home before you sell the existing home, you run the risk of owning two homes. In that case, you'd be faced with 1) making two housing payments and 2) getting a loan approval for two mortgages. Budget your income conservatively so that you'll still have money for your regular day-to-day expenses until your old home sells.

Most home buyers need to liquidate equity from their current home to buy the next one. In today's conservative lending environment, lenders have less flexibility than in the past to assist homeowners with this dilemma. If you anticipate needing financial assistance to cover a down payment, research ahead of time with area lenders and get their commitment in writing.

Of course, it's best to speak to your Realtor®, mortgage and/or loan specialist to become better acquainted with your options.

To reduce your financial risk, most people are best served to sell their existing home before buying the new one or the "up-leg". However, if you are up against a deadline, working with your Realtor® and creating a plan will reduce the stress and help you with a smoother transaction.

Copyright © 2008 HomeGain.com, Inc.