For many homeowners, thinking about selling their existing home so they can buy another is a daunting task.  The real estate market over these past few years has been in such a downturn that folks can't sell their homes for what they could have 5 years ago.  Because of this, the prevailing feeling is that there is no chance to get a home sold at a price where one can buy the next home of their choice.  Although, that is certainly true for those who have recently bought a home, those who purchased theirs before 2004 there may be a way to have their cake and eat it too.  It all comes down to a simple mathmatical equation assuming a certain % of depreciation.  Take a seller who has a home that has a fair market value of $350000.  Given today's market conditions, let's assume it could sell quickly w a 10% reduction ($35,000) and then figure another 8% ($28,000) in closing costs meaning a cost of sale of $63,000.  If this same seller then bought at home listed at $550,000 for $495,000 (same 10% reduction=$55,000) and got the seller to pay their closing costs (3%= $14,850) the seller (now buyer) would have a net gain from selling to buying of $63,000-$69,850= $6,850.  This net gain does not even take into account the lowest interest rates in the last 50 years.

If you think this makes sense for your particular situation, have a Realtor put your home on the market with it being subject to you finding your home of choice.  That way, you can accept a much lower price and then go out and see if you can negotiate a price on the home you want to buy that will offset the reduction you took on your current home.  That way, should you not be able to buy a home at the right price, you haven't sold your existing home out from under you.  This scenario obviously won't work for everyone but is definitely worth considering.