I've known sellers who signed a contract to sell their house before they knew if they were qualified to buy another. Either their financial circumstances had changed since their last purchase, and they could no longer qualify for a loan, or they weren't able to sell at a price that allowed them to buy the type of replacement house they wanted. They ended up renting or buying something that was far from ideal.

Before you decide to sell the house, get pre-approved by a lender you trust and research the housing market in the area where you wish to live so that you have a good idea how much it will take to buy a replacement.

How To Start Researching
Start looking for two types of real estate: houses that seem to match the one you'd like to buy and houses that seem similar to your current home.

• Search the Internet for homes for sale in your area and read real estate ads in your local newspapers. You won't find house locations without making phone calls, but browsing the general market is a good start.
• Pick up free For Sale publications outside the grocery store, or wherever you find them in your town.

• Determine your home's fair market value. Real estate agents will usually help you determine value as a courtesy, but you might prefer to order an appraisal.
• Do both of the above if you want to be sure the price is right.

What have single-family homes in your neighborhood sold for recently?
This fast, free Home Sales Report will help you find out.

• Real estate commission.
• Advertising costs, signs, other fees if you plan to sell by owner.
• Attorney, closing agent or other professional fees.
• Excise tax for the sale.
• Prorated costs for your share of annual expenses, such as property taxes, home owner association fees, etc.
• Any other fees typically paid by the seller in your area (surveys, inspections, etc.).
• If you are unsure of costs, ask a real estate agent. Angie deals with transactions every day and can give you a very close estimate of seller closing costs.

• Deduct your mortgage payoff from your home's fair market value.
• Deduct your costs to sell from the remainder to get an estimate of the proceeds you will be paid at closing.

Will your closing proceeds cover your costs to acquire a new home? If not, do you have cash or other funding to make up the difference?

It is best if you to leave when the house is shown. Why? Because lurking sellers make buyers nervous--they don't feel comfortable inspecting the house when they feel they are intruding.

Unless there's a real reason for it, don't ask that your agent to be present for all showings. That's the kiss of death for the best showing rates. Other agents want privacy with their buyers and they don't usually have time to work around your agent's schedule.

Make the house accessible. That means it's always ready to show. Many agents won't bother showing a house that takes 24 hours to get into.