Many home buyers have to sell a home before they can buy the next one.

If you aren't a first time buyer -- and if you haven't already sold your current home -- you are likely in this position as well, needing to sell before you can buy.

So... if this describes you, when should you start looking at homes you might buy?

A prospective home buyer who has to sell before buying will pass through three stages...

As you might imagine, it will likely be challenging to convince a seller to accept your offer when you're in the first stage above, with your home not yet under contract.

It will potentially be a bit easier (depending on competing buyer interest) to convince a seller to accept your offer when you're in the second stage above, with your home under contract, but not yet to closing.

Once you are in the third stage described above, you are certainly good to go -- the home purchase is no longer intertwined with the home sale.

Should you wait until you are in Stage 3? 

Should you at least wait until you are in Stage 2?

I vote "no" and "no" -- as I think it is fine to start looking at homes even when you are in Stage 1.

Certainly, you won't be in a position to make a competitive offer yet -- but by looking at homes for sale while you are in Stage 1 (your house to sell is not yet under contract) you'll do a few things...

1.  Gain a better sense of what you are looking for in a home you will purchase.

2.  Start to better understand current market dynamics and how different houses and prices relate based on size, location, condition and features.

So... if you need to sell your home before buying a new one... it is likely not too early to go ahead and start looking at those homes you might purchase.