At some point or another, many homeowners are faced with reasons to sell their homes. Among the circumstances that prompt people to sell their homes are the following:

• seeking a "better" neighborhood
• requiring a higher-quality school district
• relocation due to job transfer
• marriage or divorce
• overwhelming financial burden
• current home is in a state of disrepair
• there is a need for increased or decreased space
• conflicts with neighbors

Whatever the motivation is for selling, hopefully you are doing so in a strong market. If not, it might be to your benefit to delay selling your home, unless, of course, it is a matter of necessity.

Selling in a strong market simply means that home prices are elevated and steadily rising. There are a couple things to be cautious of, though. For one thing, you do not want to over-price your house just because you are in a seller's market. The sale could end up taking much more time that it would have if you priced the home reasonably. During the extra time it sits on the market, you are continuing to make mortgage and property tax payments, and you might gain less from the sale in the long run. You also want to avoid having a house sitting on the market for an exceptionally long time.

The other thing to be alert to is the timing between the sale of your current house and the purchase of your next one. Remember, you are selling in a strong seller's market, but you are buying in one, too. You might end up having to rent between the sale of your previous home and the purchase of your new one, so be careful not to let these circumstances interfere with your ability to afford the next home.

Attempting to sell your home in a depressed market can leave you with an outstanding mortgage balance that exceeds the market value of your home. There are many factors that might aid in your decision in whether or not to proceed with the sale. For one thing, you might have substantial equity in your home if you have owned it for a long period of time. This will help in the transition of selling your home and financing the next one. Also, the house you will potentially buy will also be at a lower price than it would otherwise have been if not in a depressed market.

If you are able to wait to sell your home, then by all means, you should. Do not place yourself in a situation where you do not have enough money to buy your next home. Waiting it out can be beneficial because the market will eventually turn around again. Another option would be to rent your house out if you absolutely must relocate. If the rental income covers the monthly expenses on the house, this option will buy some you some time for the market to improve.