I do encourage you to sell your home first. You will be a much stronger buyer if you do and therefore may be able to negotiate a better price. Also keep in mind your home may not sell right away. If it does you can have a contigency if you dont find a replacement home then there is no sale, or you can rent for a while, or you may be able to rent back from new owner for a while. I strongly recommend to sell your home first.
Best of luck to you!
Your question is not uncommon. When you buy, you want to be in the strongest bargaining position. right?
When you buy, you are trading up, right? Would you agree that there are fewer buyers for more expensive homes and more buyers for less expensive homes?
Trading up is the best thing to do in a declining market because the higher priced homes will have to discount their prices more in order to attract buyers. Therefore even if you lose a little on your current home, you will make up for it when you buy the more expensive home.
The key is to set clear parameters up front. Talk with your Realtor about how to maximize the profit when you sell. Part of that is "terms". Discuss your options. In most cases "seller to find home of choice" is not helpful. However, once you sell your home, negotiating a lease back if you need a little bit more time might make sense.
Know your goal. Ask the questions now, from all angles, so once you move forward, you can move with confidence. Ask a lot if 'What happens IF... questions
You can sell your home: "contingent on the seller purchasing another home", a clause that used to be called something like "Home-of-Choice". Your agent can fill you in on the details.
You'll miss some portion of the buying public with this, but then again you may encounter a buyer whom this suits perfectly, (one who also wants a long settlement period). Hey, you never know! Good luck,
Wow, your question seems to be loaded with questions! For starters, if you are working by buyer/agent agreement with your realtor, why are you not aware of all your options? Assuming that your agent is aware of information not provided in your question, the best short answer is that other options are available and as an agent, my advice would be that you discuss this matter further with your agent by asking what all the options are and than chosing what works best for you.
Your position is not uncommon and your agent's advice is sound. They are trying to keep you out of a potentially stressful situation. You can wait to list your property once you have ratified on your "dream" house, but you must be prepared to carry the property if it does not sell before settlement on your new home.