Here you go a working code snippet, works fine for wix 2.0.3116.0 (yep, 
i know it's obsolete):

      <Upgrade Id="$(var.ProductUpgradeCode)">
         <UpgradeVersion Minimum="$(var.ProductVersion)" 
OnlyDetect="yes" Property="NEWERVERSIONDETECTED" />
         <UpgradeVersion Minimum="0.0.0" Maximum="$(var.ProductVersion)" 
Property="PREVIOUSVERSIONSINSTALLED" IncludeMinimum="yes" 
MigrateFeatures="yes" />
      </Upgrade>
...
      <InstallExecuteSequence>
         <Custom Action="ERRCA_NewerVersionFound" 
After="AppSearch"><![CDATA[NEWERVERSIONDETECTED]]></Custom>
         <RemoveExistingProducts 
After="InstallValidate"><![CDATA[PREVIOUSVERSIONSINSTALLED]]></RemoveExistingProducts>
      </InstallExecuteSequence>

Also, please read documentation carefully about where to place 
RemoveExistingProducts action into InstallExecuteSequence table.

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