So you've decided you want to buy a new home, but you haven't sold your old one yet.

What's the best way forward? It's a common dilemma for home buyers and can be especially vexing for older people, many of whom fear buying a house if they haven't sold first. So this blog will deal with your options. Simply put, there are three choices if you are in this situation.

1. Make an offer on a property, subject to the sale of your own. Your offer will include a subject-to-sale clause, which allows you about eight weeks on average to sell your home. If you have other conditions in the agreement, such as a builder's report and a LIM, then they must be fulfilled first. The one big pitfall with subject-to-sale contracts is that most vendors will insist on an escape clause. This means that if another buyer comes along with a cash offer, the seller can accept that offer, and your contract is put under threat. You will usually have three to five working days in which to declare that you have unconditionally purchased the home. If you're unable to do so, your contract comes to an end and the second buyer gets the property.

2. Buy a second home even though you haven't sold the first. This approach can require nerves of steel, because you have no guarantee you're going to be able to sell your existing home before the settlement date on your new one. If the market is hot, there's more likelihood that your existing home will be sold in time. Buyers who take this approach will ensure that the contract on their new home has a reasonably long period before settlement, giving them breathing space to sell the old house. Buyers should also check with their bank that they can get bridging finance, if their old home hasn't sold in time.

3. Selling the old home first and then buying. The advantage with this method is that you will be in a cash position for buying a new property. The disadvantage is that you don't immediately have a new home to go to. But you can ensure that settlement on your old property is say, four months away, giving you more time to find something else. This approach can work especially well in a quieter market, because you may find a property that's been sitting for some time and the seller is only too willing to negotiate on the price, given that you're a cash buyer.

In the end, it's over to you as to which approach works best. You may have friends or family who can share their experiences with you. Your real estate agent can also give you further advice when you're ready to make the big move.