He's a newly minted Ph.D. who recently landed a solid teaching job at a major university in a city he loves. He's ready to settle down and buy a condo. But after months of looking at real estate, he's still torn. Is now the time to buy?

On the one hand, he's swayed by the breathtakingly low-cost mortgage rates currently available to buyers. And home prices are still within his range of affordability. Indeed, he worries that recently rising prices could mean it's already a tad late to enter the market.

On the other hand, our teacher fears that real estate markets have yet to fully stabilize. True, home values in major cities have risen sharply in recent months. But the other economic measures, including the unemployment rate, paint a darker picture. Meanwhile, family members, including those who've lost equity in their homes, are urging him to be cautious.

This true story illustrates the still pervasive ambivalence affecting would-be homebuyers in the face of mixed signals about the direction of the housing market, says Michael Crowley, a veteran real estate broker.

"Given human nature, people wonder if there's a catch to all these good prices," says Crowley, the immediate past president of the National Association of Exclusive Buyer Agents (www.naeba.org).

One result of the mixed feelings among prospective homebuyers is that they're less willing to engage in back-and-forth negotiating with sellers when counteroffers are involved.

Even after agreement is reached on a deal and the results of a home inspection come in, many buyers continue to demand concessions when flaws are found. Unless the flaws are corrected, they often want the deal to be re-cast or they'll walk away.

"Buyers still have a lot of leverage and they're obviously willing to use it," Crowley says.

Eric Tyson, a personal finance expert and co-author of "Home Buying for Dummies," says it's understandable that many buyers are still ambivalent about making a purchase, given the current level of economic and political turmoil.

Because all real estate markets have their own characteristics, and recovery is still stalled in some markets, he encourages buyers to carefully monitor market conditions in any area where they'd like to live, and to avoid waiting too long if they're seriously interested in taking the plunge.

Are you considering a home purchase in the near future? If so, these tips could prove useful:

-- Confirm your reasons for planning a purchase.

Anxiety can prevent people from moving ahead, even when it's against their interest to hold back. But those convinced that now is a good time to buy shouldn't let unwarranted fears constrain them, says Sid Davis, a real estate broker and author of "A Survival Guide to Buying a Home."

"If your job is secure and you have found your dream home, don't let groundless concerns block you," Davis says.

Davis says one way to put your fears about real estate in perspective is to re-examine your original reasons for buying. Have you yearned for a home of your own, but couldn't afford to buy until prices moderated? Or has your family outgrown its small house and you're seeking to trade up to a large space?

"Whatever your reasons for buying, you should be aware that waiting could be counter to your interests. In some neighborhoods, we're already seeing robust real estate markets where available property is starting to dry up," Davis says.

-- Find a skillful mortgage lender to help guide you.

As Davis says, lenders now want certainty that any mortgage they originate will be solid. This means you'll need to be well prepared to answer the lender's request for documents.

"To satisfy the lender, I recommend that even before you start shopping for homes, you pull together the key documents you'll need to show you're worthy of a loan," Davis says.

As proof of income, many mortgage lenders now insist on much more documentation than the customary pay stubs and W-2s. They may also require federal tax returns. Also, most lenders now want proof that the funds you've amassed for your down payment have been in your savings or checking account for some time and weren't just borrowed last week from a family member. That means you'll need to produce account statements verifying this.

Those who are self-employed can expect their lender to do a rigorous review of documents related to your business.

But the time you spend documenting your eligibility for the home loan will be worth it if your lender gives you a "pre-approval" letter. This you can use as a bargaining chip when negotiating for the property of your choice.

"Getting pre-approved makes you a stronger contender for the home you want. It gives sellers the confidence that they have a bird in the hand," Davis says.

-- Know your market, and make your decisions accordingly.

Many neighborhoods still have an unusually large number of homes available for sale. But in other areas, inventories are shrinking.

If you live in an area where many housing options are available, you can afford to take somewhat more time to make a selection and seal a deal. But Davis cautions against waiting indefinitely to buy in any popular area.

"If this is the right time for you to buy a house, don't be haunted by past problems with real estate. Times are changing and you won't want to be left out," he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

A discount store manager and his wife, a post office clerk, had long searched for an affordable house for their retirement years. So they were thrilled when they found a property that seemed perfect: a small, well-priced, one-level ranch-style house on a manageable lot.

But in their excitement, the couple failed to take note of the home's setting. Living just a quarter-mile from an airport, the surrounding neighborhood suffered the near-constant drone of planes flying overhead.

"Happily, these folks realized the racket would be a terrible problem and backed away from buying the house before it was too late," says Leo Berard, the long-time real estate broker who represented the buyers.

Berard says that it's not unusual for some homebuyers to fall in love with a house located in the wrong setting.

"Homebuyers should never ignore the overall neighborhood, or the quality of their lives could be at stake," says Berard, charter president of the National Association of Exclusive Buyer Agents (www.naeba.org).

Fortunately, the couple in this true story passed up the house near the airport and continued their search until they found another ranch house in a peaceful community without a noise problem. Although that property cost 5 percent more, they were pleased with their choice.

A recent U.S. Department of Labor study shows that Americans now spend a substantial amount of their free time indoors. But that doesn't mean they should be oblivious to what's happening outside their front door, says Ronald Phipps, a real estate broker and the immediate past president of the National Association of Realtors (www.realtor.org).

Here are a few pointers for homebuyers who want to ensure they choose a home in the right setting:

-- Factor shopping into your neighborhood choice.

Despite the rise of Internet shopping in recent years, most homebuyers still do their grocery shopping in person. And Berard says the typical buyer wants to be within a 10- to 12-minute drive of a full-service supermarket.

"It's not just the time but also the route to the grocery store. People shouldn't have to battle traffic on an interstate highway to get to a supermarket," he says.

The proximity of other commercial enterprises, such as hardware stores, dry cleaners and gas stations, are also important to purchasers, as well as quality restaurants.

Still, as Berard notes, few homebuyers are willing to live extremely close to these amenities, fearing that traffic and noise could be a problem. This could be especially vexing if they find themselves within earshot of a store, a restaurant or still worse, a bar.

-- Seek a leafy neighborhood if greenery is important to you.

Timothy Saeland, a real estate broker affiliated with the Real Estate Buyer's Agent Council (www. rebac.net), says an increasing number of his home-buying clients are "outdoorsy people" who insist that the home they buy is set in an area with ample open space and greenery, particularly if they own pets.

Are trees and green space more important to you than lavish kitchen or bathroom fixtures? If so, Saeland says you should seek firm assurances that the green areas around the home you buy will stay that way. He recommends that homebuyers stop by the local government's planning and zoning office to learn more about long-term plans for open areas near any residence they may purchase.

He believes residents in neighborhoods with dedicated parkland and hiking-biking trails are often more sociable than those where houses are cheek-to-cheek.

"People who live in green neighborhoods generally walk more and are more likely to talk to neighbors," he says.

-- Don't forget to factor crime statistics into your consideration.

Saeland recommends that prospective homebuyers contact local police before confirming plans to settle into a neighborhood that seems appealing.

"People look at crime statistics on the Internet. But fewer than one in 100 take my advice and stop by to talk to people at a local police station to learn more about the nature of crime in their area. Doing so is well worth your time," he says.

Besides giving you statistics on local crime, the police can tell you what types of incidents are most common in a neighborhood -- helping you assess its overall level of security.

-- Realize that location is ultimately a very personal choice.

For most homebuyers who are employed, a reasonable commute to work tops their search list when choosing a neighborhood. But beyond these positives, Berard says purchasers vary widely in the importance they attach to neighborhood features.

"Some buyers with very young kids insist on finding a home in a community with its own day-care center so they can drop off a child conveniently on their way to work. This is especially vital for dual-income families," Berard says.

Retirees often wish to position themselves within a short drive of a hospital or doctors' offices. And those with severe health issues may want special assurances that emergency medical services could reach them quickly.

Often, personal interests are critically important to the selection of the best possible neighborhood. For instance, Berard tells how one pair of clients -- married rabbis -- stressed their need to find a house within walking distance of a neighborhood synagogue.

Homebuyers also vary in terms of their resistance to certain neighborhood features. For instance, some find it objectionable to live close to a church that draws many cars on Sunday mornings. Yet that doesn't bother others.

"At the end of the day, your choice of a community is a highly individual matter. But it's also extremely important to your happiness," Berard says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

When it comes to selling your home, information is power.

"Most buyers tip their hands. Just listen carefully and you'll pick up clues that could prove incredibly useful when you're trying to reach a deal," says Ashley Richardson, a real estate agent affiliated with the Council of Residential Specialists (www.crs.com).

Through her more than 20 years in real estate, Richardson has repeatedly noticed how buyer feedback can assist sellers during the bargaining process. The key is to gain insight into a buyer's motivation.

She tells the true story of a pair of her clients who recently sold their small contemporary house on a wooded lot to a single woman. After a brief period of negotiation, the property fetched nearly its full list price. The sellers knew they could hold firm because after visiting the house, the woman left a note telling of her strong interest.

"She wrote about her excitement at finding the house and just how lovely the wooded lot looked," Richardson recalls.

Sophisticated homebuyers are often more cautious about expressing their positive feelings about a property. But even they will give out subtle signals of interest, says Sid Davis, the author of "A Survival Guide to Selling a Home."

"One of the biggest clues is how long the people stay in a property when they come for a visit. Anything over 20 minutes is a strong indicator they like your home. If they hate it, they'll bolt out of there in less than five minutes," Davis says.

Here are a few tips for homeowners seeking to learn about potential buyers:

-- Pick up the subtleties of what your visitors say.

"People don't always say what they mean when they see your house. Often it's quite the reverse. For example, some people will gush on and on about the lovely furniture in a home they absolutely hate. They do that to be nice and not offend you," Davis says.

Remarkably, those who lack any serious interest in a home are usually the most friendly and polite, according to Davis. Yet those most likely to bid for the place may often be more judgmental about features they don't like.

"It's a generational thing, but some older homebuyers believe they can get a better deal if they point out minor flaws -- like peeling paint. People in their 20s and 30s don't usually take this approach. They're much more direct," he says.

-- Take note of likely signs of buyer "attachment."

Buyers with a strong interest in a property often begin communicating this on their first visit. They start making what real estate agents call "possessive comments."

"People who start placing their furniture in your property are definitely gaining an attachment to the house. This is a good sign they're starting to identify with the place and to picture themselves living there," Davis says.

For instance, they'll try to imagine how their sofa would look in the living room and whether their bed would fit in the master bedroom.

-- Listen for remarks made by all involved in the home-buying decision.

Multiple decades of experience in real estate have taught Davis to avoid preconceptions about who within a family will prove most influential in choosing a home.

Indeed, Davis has noticed that the opinions of teenage children are increasingly important to parents who are selecting a property -- especially when they're comparing two homes.

He cautions against taking too seriously any negative remarks that teenagers might make about your property.

"In the end, most teenagers don't really care about the house as a whole. They only care about their room in the house," Davis says.

-- Make sure your listing agent collects indirect buyer feedback.

It's not always possible, nor recommended, for owners to be present during showings. And your listing agent may also be absent when showings take place. Still, your agent can gather feedback by calling the agent representing the buyers, Davis says.

"Within a couple of hours after buyers come through your property, your agent should be on the phone picking up intelligence," he says.

Although buyers are rarely candid about their reactions to a property in the presence of its owners, Davis says most agents are truthful with each other when buyers lack interest in a property.

"If the buyers thought your place was a dump and hated the floor plan, you'll be sure to hear about it -- though not in those words," he says.

-- Don't let buyer compliments go to your head.

Perhaps you're confident that people who've toured your home are extremely interested. And maybe you've determined they're under pressure to move due to time constraints or other factors that make your house ideal.

In this situation, Richardson says you should feel more comfortable holding firm to your price.

But she warns it's risky to take your prospects for granted, even if they seem extremely motivated. For example, you wouldn't want to make a counter-offer just to gain a very small advantage on price or terms.

"Remember that in this market, buyers have many, many choices -- if not in your neighborhood, then in other neighborhoods. So it's foolish to be overconfident. Prolong your talks too long or push too hard and your prospects could easily find another house they love more," Richardson says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)