The bottom line is this. Your home will sell when it is perceived a value by the buyers in the marketplace. Homes are selling when they are properly positioned and with the right agent. A great agent will know where to price your home to sell without giving away too much. Starting too high will cost you more in the long run!
It is also important to note that a great deal is not always 10%, 20%, 30% off the list price... a great deal can be a home that is priced at a great deal from the start of negotiating.
If you hire a great agent with great negotiating skills then you will be able to price your home right and negotiate tight, then your agent will be able to negotiate a great deal for you when you go to purchase. Interview many agents and ask them how they negotiate... how they provide you with the right price to offer then choose the agent you feel will do the best job for your wallet! Not all agents are alike!
Example: If I lose X then I want to make sure I get Y off of the next home's MARKET VALUE. Market Value is the big catch here.
The big hang up most people have is what they THINK they need. Your IBM stock won't sell because you need $5 more, just like your home won't sell because you need $5K more. Price it right and get it sold and then reap the rewards when you move up!
The short answer is that if you are buying a more expensive home you may lose a little on the sale, but should be able to negotiate a greater reduction on the new home because there will be fewer qualified buyers. As lender guidelines become tighters, the pool of buyers decreases. So when demand decreases, prices?????
Decrease, that is correct.
Take steps to inventory the pros and cons in your decision making. Weight in your cost -- cost of moving, selling, and buying, vs the gains -- quality of living, savings from gas.