Considering the housing market and economy, would it be most beneficial to list a home now or wait to 2011?

Due to our financial situation, it's in our best interest to sell our home (or go bankrupt). We can wait awhile to put the house on the market, but wonder if we'd be missing a potential buyer NOW. We need to sell, downsize, and reduce spending, before our savings runs out. We're in our 60's and retired with only a small income stream and some large medical issues. Our savings is drawing down rather quickly. We could rent, but plans are to purchase a smaller home in a senior community with the proceeds from the sale of our current home, which is only 3 years old. Our costs will be lower for the home we would move into and we should still have some proceeds left over from the sale of our current home. Timing and receiving maximum value for our current home is the issue.