A half-decade ago, more retirees were interested in buying a home in an age-restricted senior community. But that was before the Great Recession hit.

Since the economic downturn, real estate specialists say they've detected a decline in interest in "active adult communities" where recreational activities are packaged into a lifestyle that caters to older adults.

"There's a lot less interest in one-size-fits-all living. More people want an individualized lifestyle and multi-generational living," says Art Godi, a real estate broker and former president of the National Association of Realtors (www.realtor.org).

Godi says many retirees are still drawn to the amenities offered in classic retirement communities, which are typically located in the sun-drenched areas of the map. But they're even more attracted to a lifestyle that allows them easy access to offspring.

"Grandchildren are an increasingly important factor in home-buying. The more insecure our society becomes, the more families want to stick together," says Godi, whose family-owned real estate firm has sold homes for decades.

"Grandparents provide a great emotional support system that's especially important if the parents have stressful jobs and work long hours," Godi says.

Are you an older homebuyer seeking a place that will allow you more interaction with your grandkids? If so, these pointers could prove helpful:

-- Realize the advantages of buying a home near your children's place.

Allan Zullo, co-author of "A Boomer's Guide to Grandparenting," says he and his wife, who live in North Carolina, relish seeing their four grandchildren, ages 3 to 16. The problem is that two live in San Francisco and another two in Tallahassee.

To see more of the Florida grandchildren, he and his wife recently built a small cottage on the property where the kids live, in which they reside three months out of the year -- and they couldn't be happier.

Living very near your grandkids can work for you if you have close-knit family relationships, Zullo says.

"It takes the right family dynamics to make this work," Zullo says.

-- Discuss the implications of living near your children before you move.

Living near grandchildren can be enriching for all involved. Most grandparents find it gratifying, and most working parents appreciate the nearby support system.

But Zullo says you shouldn't move near your grown children without first discussing the expectations of everyone involved.

"You need to talk it out and define boundaries before making a move," he says.

According to U.S. Census Bureau data, an increasing number of people are now actively involved in raising their grandkids. But is it OK with your kids that you take over major childcare responsibilities? And are you willing to do so?

No matter how much they love their grandchildren, Zullo cautions retirees against centering their lives solely on family.

"It's vitally important you also have your own friends and activities," he says.

-- Seek to buy in a child-friendly neighborhood.

Mary Biathrow, a veteran real estate broker and grandmother of four, recommends that retirees planning to buy a property near their grandchildren look for a family-oriented neighborhood.

"There isn't much for kids to do in a retirement community. You're better off living in a neighborhood where there are other young kids to play with," she says.

-- Think of a home in a resort area as an alternative to moving near your kids.

Leo Berard, charter president of the National Association of Exclusive Buyer Agents (www.naeba.org), has 13 grandchildren scattered around North America. He and his wife have decided to keep their large family house in Massachusetts. But not long ago they also bought a spacious condo in Naples, Fla.

When they acquired the Florida place, they hoped it would serve as a magnet to encourage their kids to visit from as far away as California. And their hopes have been realized.

"There's a tremendous amount for the kids to do here in Florida -- including fishing and boating, which they love," he says.

-- Don't overshoot your budget to buy a home to attract your grandkids.

It's fine if you can afford to buy a vacation property that encourages family visits. But overextending yourself at the expense of your retirement security is a mistake, says Candace Carnegie, a seasoned real estate broker.

Carnegie, who lives close enough to her grandchildren to "pop in for dinner," very much enjoys time spent with the extended family. But she cautions those with limited retirement assets against taking so large a mortgage that their financial security is threatened.

"Even retired people can still find lenders who will let them borrow more than they should. It's great to live in a place that lets you see your grandchildren often. But you don't want to be house poor and lack money to pursue your other strong interests, like travel," she says.

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

Financial advisers have long cautioned retirees to avoid taking on mortgage debt when they buy a home. But some find it unavoidable -- even when they're downsizing to a smaller property in a more affordable real estate market.

Rodney Harrell, a housing policy adviser for AARP, says older homeowners are increasingly likely to keep facing mortgage payments in their later years. In fact, a majority of owners over 55 now have mortgages versus a minority in 1989. The data -- the most recent available--show a dramatic change.

Economic factors are the key reason why fewer retirees are able to buy a different property without taking out a home loan.

"Housing costs have gone up higher than incomes," Harrell says.

Still, he notes that many longtime homeowners have less equity than before the housing downturn of recent years. When they sell one home to buy another, they often lack the funds to pay cash for the new property or to make a large enough down payment to be spared high monthly mortgage costs.

Facing a substantial monthly mortgage payment can be especially troublesome for retirees, who are often beginning to face health problems. The risk to those with a mortgage is that they'll lack the funds to pay for both housing and health care, including their medicine. They may also want to have enough of a cash reserve to pursue interests and hobbies in their retirement years.

Here are a few pointers for retired or soon-to-retire homebuyers:

-- Design your housing agenda in the context of a larger life plan.

Sheryl Garrett, the founder and CEO of the Garrett Planning Network, a nationwide network of fee-only financial advisers, says that for most people a home purchase in retirement involves lifestyle changes and trade-offs. As she says, such trade-offs are highly personal and best made after a period of reflection and planning.

She says her years of experience working with retired clients have taught her that those who are able to pursue their passions during this period of their life are most likely to thrive. But whether you plan to take up pottery, study a musical instrument or travel to China, your interests will have financial implications.

As a first step for couples seeking to identify their strongest personal interests, Garrett recommends that couples do one of the pencil-and-paper exercises she outlines in one of her many books, "Personal Finance Workbook for Dummies."

Working separately, the partners write down 30 things they'd like to experience, see or do. Then they classify these as "A," "B" or "C" level desires. Finally, the partners share their lists with each other. They then focus on the high-priority items.

To gain a broad understanding of retirement and how to balance your financial and personal plans before committing to a home purchase, Garrett recommends a book called "The New Retirementality" by Mitch Anthony.

-- Do an inventory of your savings for retirement.

Any comprehensive plan focused on cash-flow concerns in the present should also factor in long-term financial needs, says Eric Tyson, a personal finance expert and author of "Mind Over Money: Your Path to Wealth and Happiness."

Before you take out a mortgage of any size, he encourages you to do a full accounting of your retirement funds, especially if you're in good health and can anticipate a long life span.

To gauge how well-prepared you are for a potentially long period of retirement, he suggests you use the free planning calculators provided by such mutual fund companies as Vanguard and T. Rowe Price.

"Before making any mortgage commitment, the sensible thing is to first tally up your assets and liabilities. Making a move doesn't mean you have to be house poor. But you do need to plan," says Tyson, co-author of "Home Buying for Dummies."

-- Take into account the extra time a bigger property could cost you.

Suppose your housing dream involves a much bigger property complete with elaborate gardens. If an assessment of your finances indicates you could afford it, should you go ahead on that basis alone?

Not without considering the implications for your time, Tyson says.

"Time is precious, especially in retirement. And keeping up a really big home can be draining on both the physical and emotional levels," Tyson says.

Tyson suggests people carefully review their personal priorities before purchasing a property that could tax their time.

"For a lot of retired people, spending time with friends and family is more important than keeping up a big house," he says.

-- Don't rule out moving to a lower-cost area to fulfill your housing dream.

Are you willing to move to a different area to upgrade your housing without increasing your monthly mortgage payments? If so, Tyson suggests you might wish to consider changing venues.

Tyson cautions that anyone considering a retirement move to save money should factor in all the costs associated with the move, including the local property taxes in the new area. In addition, take note of the air travel costs associated with living in a remote area.

"Don't count on wishful thinking about moving to cut expenses. Do a detailed analysis or you might live to regret your move," he says.

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

Once his classic 1920s-era Tudor hit the market, its owner knew it wouldn't take long for his phone to ring. The house, located in a coveted suburb, featured soaring ceilings and a swank new kitchen suitable for a Better Homes & Gardens spread.

But the seller's first contract offer proved disappointing. It came from a couple in their 20s who offered $50,000 under his asking price and requested extensive help with closing costs. What's more, the would-be buyers hadn't bothered to attach a "pre-approval letter" from a mortgage lender showing they could finance the place.

"The gap between what the sellers wanted and what the buyers bid was absolutely huge," says Ashley Richardson, the real estate agent representing the home's sellers.

In a different market, the seller might have taken personal offense at the low bid and dismissed it without response. But acting on the advice of Richardson, he counter-offered $5,000 below their asking price. He also asked for proof the couple could afford the house.

The seller was wise to stand his ground. It took a couple of weeks for the buyers -- who were searching for a one-of-a-kind house with character -- to circle back with a better bid. But when they did, they submitted a bid $40,000 higher than their original offer. They also reduced their demand for closing cost help and provided a pre-approval letter.

This example illustrates how sellers can often shape an offer to their liking without alienating prospective purchasers, says Richardson, a veteran agent affiliated with the Council of Residential Specialists (www.crs.com).

The current mismatch between buyer and seller expectations is leading to an increasing number of counteroffers and counter-counteroffers, according to Kevin Borland, the broker-owner of a real estate franchise.

"Sellers definitely have more clout now. But they're not overconfident. If an offer comes in -- even a low offer -- they see it as a bird in the hand. They try to work with the buyers to make a deal happen," says Borland, who's sold homes since 1992.

He cautions sellers against summarily rebuffing any offer "that's within the right ballpark" -- especially one that comes in soon after their property hits the market.

"The first offer you get is often your best one. The longer your home sits unsold, the less you'll ultimately get. People who are too cocky about initial offers usually live to regret it," Borland says.

Here are a few pointers for home sellers:

-- Take special note of changes made by buyers to a standard contract.

Many sellers are tempted to ask neighbors to look at a contract offer before deciding how to respond.

But Borland cautions that neighbors typically have a foggy notion of local property values. As a result, they might urge you to reject a perfectly good bid on the mistaken belief that property values are much higher than what's being offered.

"Remember that your neighbors are hardly objective. They're biased because they want to believe their own home is worth more," he says.

A trusted listing agent should be the first source of advice for cautious home sellers who want to ensure that a contract offer is sufficient and that all the clauses in the document are acceptable.

Each year, the so-called "standard" sales contracts used by the real estate industry become more lengthy and complex. Yet often the most troublesome provisions involve non-standard language.

"It's especially important to notice any clauses that are handwritten into a contract offer or included in special addendums that are attached," Borland says.

Eric Tyson, a personal finance expert and co-author of "House Selling for Dummies," advises anyone seeking a second opinion on an offer's fine points to have it reviewed by an attorney who specializes in real estate.

"Just as you don't want a heart surgeon operating on your brain, you don't want a generalist lawyer advising you on a house contract. Real estate law is a specialized field," Tyson says.

Also, he says you're probably not going to want your lawyer directly involved in nitty-gritty negotiations with prospective purchasers.

"If you get an attorney into negotiations, your buyers might think they also need a lawyer. That will run up your legal bill and could also lead to an adversarial relationship that might kill the deal," Tyson says.

-- Beware of troublesome conditions attached to an offer.

In popular neighborhoods where demand for homes exceeds supply, Borland says it's uncommon for would-be buyers to make the purchase of a property conditional on the sale of a home for which they've yet to find a buyer.

But he says any seller who encounters such a contingency should shy away.

As a practical matter, such a bid will discourage other potential buyers from stepping in with an unconditional offer.

"Essentially you're taking your home off the market without knowing that the deal will finally go through. That's not in your interest. If your buyers can't sell their house, you have to go back to square one," Borland says.

-- Make doubly sure the buyers' financing plans are solid.

Attached to any good contract offer is a mortgage pre-approval letter. This shows that the would-be buyers' credit has been verified and they have sufficient assets -- including cash in the bank -- to go through with the deal.

These days, the terms "pre-approved" and "pre-qualified" are often used interchangeably. But as Borland says, a pre-qualification letter "doesn't prove anything." That's because the borrowers have yet to provide to the lender the bank statements, W-2s and pay stubs needed to confirm they can afford your place.

Even a pre-approval letter is not a watertight guarantee the lender will fund a mortgage for a particular set of buyers, allowing the deal to clear without snags, Borland says.

To protect the sellers he represents, Borland routinely calls the lender who's signed a pre-approval letter to ask about the buyers' financial status and to ensure they've had their credit run and their assets verified.

"Lending standards are extremely stringent nowadays. So you can't be too sure your buyers' mortgage application will really go through," he says.

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