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I am looking to build a classified ads website but confused whether to go with joomla or wordpress. I know only a little about joomla and nothing about wordpress. Also if in the future, I want to switch from one to another, how difficult it would be? Is it possible? Or I have to start from the scratch again?

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Assuming you don't want to use a specific Classified Ads Content Management System, I think that at this point you should consider Drupal as well. Drupal is very effective on user/permission management by default, and Drupal 7 already allows custom content types by default.

There's even a module for that: http://drupal.org/project/ed_classified and http://drupal.org/project/usage/ed_classified

but depending on what you want, it might be feasible without this module.

To do the same thing in Wordpress, you would have to patch it with a lot of scripts/plugins. If you don't have deep understanding on how a CMS works, keep plugin usage at a minimum. There's no guarantee that very specific plugins will be updated and continue to be compatible in the future.

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