Most real estate markets across the country are in a steady state of recovery, with home prices still rising and foreclosures falling closer to pre-recession levels. But in other neighborhoods, signs of distress linger and a fair number of vacant homes still languish unsold for lengthy periods.

If markets are tepid, it's due to "weak fundamentals," according to Daren Blomquist, a vice president at RealtyTrac, which follows real estate trends throughout the nation.

Ironically, some areas that are facing better job numbers are simultaneously experiencing a surge in foreclosures. Typically, these are jurisdictions where homeowners, taking advantage of legal protection, are able to resist foreclosure for a considerable time.

Assuming the area where you plan to buy is facing a belated wave of foreclosures, he says you might benefit in terms of price.

However, he urges those interested in purchasing a foreclosed property to exercise caution, because many bank-owned homes stand vacant for a lengthy period before they're put up for sale.

"During the foreclosure process, many homeowners let their homes deteriorate. And others engage in active destruction," Blomquist says.

In many cases, bank owners do a thorough inspection and restoration of foreclosed properties. But other such homes are sold "as is."

Here are a few pointers for buyers:

-- Look for a healthy discount on a vacant home offered "as is."

Rob Birkeland, a real estate broker and realty company co-owner, says homebuyers contemplating the purchase of a foreclosed home, especially one that has been empty for a month or more, can often expect a substantial discount, up to 30 percent, off the current market value.

But Birkeland, who's affiliated with the Council of Residential Specialists, cautions potential buyers of vacant homes to carefully assess the property and garner as much information as possible about its previous occupants before committing to its purchase.

Birkeland, who's sold homes since 1997, has observed many issues with vacant houses -- including major problems affecting their plumbing, heating or cooling systems. He's also witnessed malfunctioning appliances that the owners left unfixed when they moved away.

"The biggest problem is deferred maintenance," he says.

-- Attempt to learn about the previous owners of a foreclosed property.

Obviously, it can be hard to learn about a foreclosed home, because its previous owners have moved away and its institutional owners are resistant to passing on details.

"The bank will shut up, because it doesn't want to make any legal representations about the property and who lived there," says Merrill Ottwein, a real estate broker and past president of the National Association of Exclusive Buyer Agents.

Ottwein says your best sources of information are often neighbors, who usually have a wealth of information to offer about the former residents and the work they did, or failed to do, on the house in question.

-- Think through the idea of doing a "pre-inspection" of a vacant home.

If the property you like has gone unsold for a lengthy period, you're likely nervous about hidden problems. In fact, you might wish to wait to make an offer until you know more. In such cases, Ottwein advises you to consider hiring a home inspector for a preliminary look.

He tells the true story of clients who spotted a bank-owned house with excellent curb appeal, including a well-pruned yard. But the buyers wanted to know more before making a bid. They polled the neighbors, who noted that the property's previous owners repeatedly hired plumbers to resolve a mysterious problem. To probe the issue, the couple paid a few hundred dollars for a preliminary home inspection. This revealed that the sewer drain in front of the house had filled with roots and would have to be replaced -- a costly proposition.

"Knowing this, they were immensely grateful that they could walk away without buying that pig in the poke," Ottwein says.

"If you decide to go through with the purchase, the pre-inspection will let you bid based on its findings. Or you can pass on the purchase without complications," Ottwein says.

-- Make sure the utilities are on when the inspection is done.

Dorcas Helfant, a past president of the National Association of Realtors, says cost-conscious banks that own foreclosed property sometimes shut off utility service to the vacant homes they own, including gas, electric and water. But lack of utility service poses a challenge to home inspectors.

"There's no point to doing an inspection when the utilities are off because you can't determine if the cooling, heating and plumbing are working correctly," she says.

Helfant strongly recommends that buyers hire a home inspector to check out a vacant place, if not before their offer is submitted, then after. And even if you have to pay to get utility service restored, she says it's worth the expense.

-- Shape your bid for a foreclosed home in the context of the local market.

Before you make an offer on a foreclosed home, "the key is to take a careful look at the recent sales history of the surrounding neighborhood," Ottwein says.

Ask your real estate agent to examine at least three similar properties that have sold in the immediate area in the past three to six months, adjusting for differences, such as a second fireplace or a larger garage.

Clearly, you'll want to take a home's condition into account when judging its market value. But Ottwein cautions against seeking an oversized discount just because the property went through foreclosure and sat vacant for a spell.

"You have to consider the current market and find out whether there are rival bidders. If there are lots of foreclosures in your area, a nice discount is possible. But it's never an absolute certainty," he says.

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

A couple in their late 50s spent weeks grappling with a big question about the right house to buy for their upcoming retirement. They were torn between choosing a traditional two-story house versus a one-level ranch that would spare the need to scale the stairs as they grew older.

They looked at both horizontal and vertical properties and debated the issue at length. At first, they leaned toward a one-story place. But in the end, they surprised their real estate agent, Ashley Richardson, by opting for a majestic colonial with two levels of living space plus a walk-up attic for storage. They're about to move in and are convinced they made the right choice.

"Both the husband and wife are physically fit and reason that living in a house with stairs will help them to stay that way. Besides, they really love the colonial, which has a huge sunroom and a big backyard for gardening. By way of comparison, they thought the ranches they visited were much less elegant," Richardson says.

It's a common debate, according to Richardson, who's affiliated with the Council of Residential Specialists (www.crs.com). She says many baby boomers have a tough time deciding between the convenience of one-level living and the architecture of a two-story home.

Older homebuyers who want a detached house often seek to purchase a brand-new property in order to avoid upkeep and repairs. But as Richardson notes, in some very high- cost areas, it can be very hard to find new single-level housing that's affordable.

"Land prices are rising quickly, and land is scarce in many favorite neighborhoods," she says.

Mark Nash, a real estate broker and author of "1001 Tips for Buying a Home," says some of the advantages of single-story living might trump the cost issue.

"For one thing, it's a whole lot easier to keep a single-level house clean," Nash says.

Here are a few pointers for retirement-age homebuyers:

-- Try to anticipate lifestyle changes in your coming years.

Regardless of your age, it's often difficult to project your future housing wants and needs, says Sid Davis, a real estate broker and author of "A Survival Guide for Buying a Home."

He encourages older buyers to plan ahead at least three to five years, anticipating likely changes in their health status and future housing preferences.

Through his more than three decades selling real estate, he's noticed that buyers who are overweight or have chronic health issues, like diabetes, often have a strong preference for one-level living.

"These are people who know that their mobility is likely to be compromised in coming years. So for them, a one-story house is an obvious choice," Davis says.

-- Factor in the resale potential of one-level housing.

Richardson, who sells homes in a popular suburban area, recently listed a ranch-style house in her community. And to promote its sale, she sent out a large-scale mailing targeted to older people in the neighborhood who might be interested in downsizing. Everyone on the mailing list was invited to an open house.

"The response to the invitation was tremendous. Obviously, a lot of people with big houses in my area are mulling over whether to trade down to a one-level house without having to move far away. Also, many people think that buying a single-story house could be a good investment for the future," she says.

-- Consider the pros and cons of a second-floor home office.

In your retirement years, do you anticipate running a small business out of your home? If so, Nash suggests you factor in the pros of having an out-of-the-way second-story office rather than one on the first floor.

"Working from an upstairs bedroom can be especially helpful if you need to do a lot of solitary computer work or writing to keep your business going. That's the case for a lot of people who do consulting work from home," Nash says.

Another less obvious plus of a second-floor home office is that you'll be farther from the temptations posed by your refrigerator or primary TV.

However, a business that involves more interaction with customers than a typical consulting company could be better positioned on the entry level of a home, he says.

"It can be extremely inconvenient to keep running up and down stairs to answer the door every time people or packages arrive. In that case, a house with space for a first-floor office could be your best bet," Nash says.

-- Rule out a home that would meet your needs only with an addition.

Occasionally, Davis says, older homebuyers who become enamored with a two-story property plan to purchase it with the intention of adding on a first-floor master suite after they move in. That way they figure on hedging their bets in the event that stairs later prove a problem for them. But he attempts to dissuade them from this idea.

"If most of the other homes in the neighborhood lack first-floor suites, you could be at risk of spending money that you'll never recoup. When you sell, you can assume you'll never recover more than 40 to 50 percent of the money you've poured into that type of a remodeling job," Davis says.

Also, he says there can be many annoying complications involved with building an addition.

"Think it through carefully. Do you really want to spend your free time in retirement dealing with a bunch of contractors and unexpected cost overruns? Also remember that doing an addition can be tremendously messy and disruptive," Davis says.

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

They're called "power ZIP codes": neighborhoods that massage residents' egos, giving them bragging rights at cocktail parties. They feature sumptuous homes with well-landscaped grounds and give residents easy access to acclaimed schools and tony amenities, such as fine restaurants.

Do you live in one of the smallest and least opulent properties in one of these ritzy neighborhoods? And do you plan to soon sell your modest place, yet worry about competing with larger, statelier houses already up for sale?

If so, don't panic, says Mark Nash, a veteran real estate broker and author of "1001 Tips for Buying and Selling a Home."

"Remember that you're the gatekeeper to a great community for many people who otherwise couldn't afford to live there," Nash says.

Granted, more luxurious homes in the same area probably have more high-end features than does your place. Likely they have more bedrooms and built-in kitchen amenities that you couldn't squeeze into your home, such as a massive side-by-side refrigerator and a large wine cooler.

Still, when it comes to selling your property, you can expect to attract a more sizeable pool of potential buyers.

"Don't forget there are many wannabe buyers who dream of living in your power ZIP code," Nash says.

Here are a few pointers for the sellers of modest houses in power ZIP codes:

-- Avoid the temptation of pricing as if you had a larger place.

Joan McLellan Tayler, the author of several real estate books, tells the true story of a couple in their 40s with four children under the age of 10. They had a tight housing budget, but desperately wanted to live in a fancy suburb of San Francisco with top public schools.

To accomplish their goal, they found a reasonably priced yet tiny English cottage in their favorite neighborhood, a place with just two bedrooms. They bought the house and accommodated all their kids -- dormitory style -- in a single bedroom.

"The couple obtained the house for a fair price. Had it been overpriced, they could never have bought it, nor could others in the same price range. The sellers would have eliminated a lot of well-qualified buyers," says Tayler, who formerly owned a realty firm.

"Price too high and you'll be sorry, because you won't fool anyone. Don't forget that the defects really pop out in the overpriced house, giving people lots of reasons not to buy it," she says.

-- Give your front yard priority attention.

Though you can't list your property for as much as more spacious and better-appointed homes in the same community, Nash says you nevertheless need to make your turf look nearly as appealing.

"People are competitive, and ... a great yard is a status symbol for many folks," Nash says.

He recommends you hire a landscape designer to create an overall plan for your yard, emphasizing bushes and trees that flower when the season is right. Then to save money, you can do your own installation of the plants chosen by your designer.

In addition, make sure all your greenery, old and new, is pruned below window level, so as not to hide the intrinsic beauty of your home.

-- Focus on interior detailing.

Real estate agents rarely recommend major renovation work in advance of a sale. For example, they wouldn't say a petite house with only a very small den should have a large family room added on. The reason is that sellers usually don't recoup the cost of such a major remodeling job, even in a prestige neighborhood.

But Nash says you can better than recoup the money you spend on most interior detailing.

"Though your house is much smaller, you still want to give buyers the visual clues that it fits within your high- status neighborhood. Your buyers will be attuned to the right paint colors and specialty wallpapers," he says.

As sellers, he recommends you invest in quality workmanship for your interior finishes.

"Look for painters who do a superior job. When it comes to painting, the prep work is extremely important. To obtain the best results, the painter should do extensive preparation of walls and trim and use a primer, along with at least two coats of paint," according to Nash.

-- Invest in your flooring.

Many upscale homes -- including brand new properties -- still feature wall-to-wall carpeting in bedroom areas. However, Nash says homebuyers are increasingly likely to favor hardwood floors.

"Hardwood is elegant and architectural. In contrast, much wall-to-wall carpeting seems tired and dated," Nash says.

Nash urges sellers who already have hardwood floors to consider getting them refinished. Those living in upscale communities may even wish to replace wall-to-wall carpeting with new hardwood in very visible parts of their property.

-- Seek guidance through a design professional.

In attempting to improve the look of a home you're selling, you undoubtedly have the best of intentions. But Nash says few sellers have the good taste and skills to pull off the best possible look.

He recommends that sellers planning a redo seek help through the American Society of Interior Designers (www.asid.org). In many areas, interior designers are willing to work on an hourly basis, says Nash, who contends that getting professional advice to select the right fabrics and paint colors can make a major difference.

"Look for a designer who does a lot of business in your neighborhood. That way you'll not only enhance your house, but also find someone to talk it up to people hoping to live in your area," he says.

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