After turning 60, a senior-level engineer and his teacher wife sat down to map their next decade.

They knew for sure they wanted to sell the dated-looking property where they'd raised their kids. But the tougher decision was about their next house. Should they downsize like so many of their 60-something friends? Or upsize to buy the trophy home they'd always wanted?

"This couple had extremely mixed feelings. They worried that upkeep on a big house would be expensive," yet they also wanted the luxuries and space of a large house, says Sid Davis, the real estate broker who represented the couple.

Ultimately, they decided to buy a larger house and soon found the perfect place -- a sprawling, one-level property with 4,500 square feet of living space and lots of extras.

"Their ideal was to create a mecca that would draw their four grown kids and eight grandkids. And the house they bought fulfilled all their wishes perfectly," says Davis, the author of "A Survival Guide for Buying a Home."

Of course, not all buyers heading into retirement can afford to trade up.

"Only about 20 percent of my baby-boom-age buyers are going bigger," Davis says.

Yet, just as the market for large SUVs is again increasing, so are more people revisiting the idea of owning a larger living space.

Here are a few pointers for buyers:

-- Systematically think through your "must have" priorities.

"Ranking your priorities is an absolute key. Ultimately, your best living style is determined by your personal preferences," Davis says.

If you're married or living with a partner, Davis recommends you both rank your housing priorities. Then compare notes and if there are differences, strive for compromise.

Though Mark Nash, author of "1001 Tips for Buying & Selling a Home," is single, he faced his own set of trade-offs a few years back when he decided to sell his 3,200-square-foot house in an upscale city neighborhood in favor of a 1,000-square-foot condo in a middle-income suburb. He could have moved to a larger home, but his higher priority was to save enough money to also buy a modest, lakeside getaway.

While he did save money, his move to the condo came with sacrifices. Though he liked his neighbors in the complex, he missed the leafy area where his city house was located. He also missed the privacy of a single-family property. As a result, he did a U-turn, selling the condo and buying another detached house.

"The buying decisions you make should focus mostly on functionality and what works for your household," Nash says.

-- Challenge your need for a spacious house for parties or houseguests.

Like the engineer and his wife, some people seek a large house to host big family gatherings or office parties.

If home-based entertaining is something you value highly and you're comfortable with the payments on a big property, why not go for it? But if you're more interested in the financial benefits of living smaller, you may wish to consider less-expensive approaches to hosting friends and family.

As an alternative to home-based entertaining, Mary McCall, a real estate broker and past president of the Council of Residential Specialists (www.crs.com), suggests treating family or friends to a dinner at a restaurant with a private dining space. And if your house is too small for overnight family visits, a nearby hotel could work well.

"Many people worry they'll someday outlive their retirement savings. They greatly fear taking on a big mortgage. Also, many folks aren't interested in hosting Uncle Joe or Cousin John when they come to town. They'd rather put them up at the Holiday Inn," McCall says.

-- Face reality when it comes to your storage needs.

Davis says some homebuyers like big houses because they place a premium on storage space.

Assuming you can afford it, Davis says buying a large house for extra storage space could be a reasonable plan if it saves you the expense of long-term use of a rented storage unit. But he warns against the notion that you can keep accumulating possessions just because you have a big house.

"Remember that no matter the size of your house, storage space is always finite," he says.

-- Don't delay, whether you plan to buy a small home or a big one.

Obviously, the trend in property values varies widely from one locale to another. In some areas, prices are flat or still drifting downward. But in most neighborhoods, values are continuing to rise in tandem with the economic recovery.

If you're planning to buy a big house in a popular area with ascending home values, Davis urges you to avoid postponing for long.

"The rates on jumbo mortgages are especially reasonable now. So if you're determined to move into a larger house, try not to dally," he says.

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

Landlords are now commanding premium rents in an increasing number of popular neighborhoods. That makes it all the more difficult for long-time renters to save sufficient funds to afford the transition to homeownership.

Tom Early, a past president of the National Association of Exclusive Buyer Agents (www.naeba.org), says rising rents mean tenants have little discretionary income left to save for a down payment or closing costs.

He says renters who have a child or two are especially strongly focused on homeownership, and because of such obstacles, some couples with kids try to pursue an interim step by attempting to move into another rental unit --ideally a detached house -- in a neighborhood with well-rated schools. But Early says rentals in such neighborhoods are exceptionally hard to find.

Although the barriers facing many first-time buyers are substantial, many who plan ahead and find a well-priced property can meet their goal.

Here are a few pointers for buyers:

-- Scout out the best neighborhood you can afford.

Many who've felt trapped in a rental unit for years get very excited when they first start shopping for a place to buy. But it's a mistake to let yourself fall in love with a particular house before you've scouted around to find the best one you can afford, says Michael S. Knight, a Chicago-area financial adviser affiliated with the Garrett Planning Network (www.garrettplanningnetwork.com).

"It's not uncommon for people to choose a neighborhood too quickly," says Knight, who recommends you compare several areas before making your pick.

To help with your due diligence, he says it's wise to sit down for an informal chat with an agent who specializes in the sale of real estate in each community on your short list.

Which neighborhoods are most likely to hold or gain value in the future? Ashley Richardson, an agent affiliated with the Council of Residential Specialists (www.crs.com), says access to high-quality public schools is one critical factor, along with nearby quality public transit.

"Millennial homebuyers -- those in their 20s and 30s -- don't want to ... spend a lot of their free time commuting long distances," Richardson says.

In addition, she says buyers of all ages want to live in an area where they can easily walk to shops and restaurants.

How can you quickly assess whether a neighborhood is pedestrian-friendly? One way is to visit a website that rates communities for their "walk scores." Just go to www.walkscore.com and type in the address of a house in the neighborhood.

-- Look for a good deal from sellers who are highly motivated.

The biggest wave of recession-era foreclosures has passed. But in every market, there are still sellers who must move and are anxious to do so. Richardson recommends that buyers searching for a good deal consider homes that have languished unsold for multiple months, usually because they were overpriced when they first hit the market.

It's not always easy to identify highly motivated sellers. But if a property is nearly vacant or there are no clothes in the closets, you can normally assume its owners have moved. You can also learn more by posing polite inquiries to neighbors living near the property.

"Stop by on a sunny Saturday or Sunday when you can chat with residents who are out in their yards. Tell them you admire their area and would like to know about for-sale properties there. If you're friendly, most people will try to help you," Richardson says.

-- Try to buy a house big enough to meet your needs for a lengthy period.

Before the last recession, many buyers were focused on "flipping," the practice of buying properties in hope they'd appreciate quickly and could then be sold for a profit.

But many who tried this game failed, teaching others a cautionary lesson about how tough it is to make speculation work.

"Forget about flipping, especially when it comes to buying a first home for your family. In any case, you wouldn't want your children changing schools too often," Early says.

-- Make sure you stay within reasonable limits when shaping an offer.

Once you've pinpointed a solid neighborhood and found a dream property there, you may be ready to make a bid. But Richardson says that before deciding how much to offer, you should obtain some facts and figures on recent sales in the area.

Ask your agent to give you statistics on homes that have sold recently -- the fresher the data, the better.

Are you seeking to buy your dream property in a popular area and know you'll face rival bidders? In that case, Richardson says you may wish to add a small monetary sweetener to help you outdo the others.

"You don't want to overshoot the value of the house by a huge amount. But you may wish to add perhaps $1,000 to $2,000 to your bid. If you truly love the place you've found, that's not a lot of money when spread over all the years you'll be living there," she says.

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

A machinist and his homemaker wife, both in their early 40s, had long been planning to sell their fully renovated Craftsman-style house to build a bigger, custom place on a rustic country lot. But they held off until autumn, waiting for perfect selling conditions in their area.

Their timing was just right.

Within a couple of days after their place went on the market, the couple bagged two offers, each for their full asking price, which gave them leverage when they made a counteroffer.

"Besides a good price, the sellers really wanted to remain in their house until the new place was totally move-in ready. Through good planning, they closed on their sale and now have the right to stay for up to 90 more days at a very nominal rent," says James "JJ" Godi, a real estate broker involved in the deal.

This story illustrates how sellers can often shape an offer to their liking, without pushing so hard as to alienate prospective buyers, says Fred Meyer, an appraiser and real estate broker who sells property near Harvard University.

Can all sellers act as demanding as the machinist and his wife?

"That depends on how much leverage they have in their market. The sellers' strategy has to be appropriate for market conditions," Meyer says.

Here are a few pointers:

-- Don't solicit advice on an offer from friends in your neighborhood.

Some sellers are inclined to ask neighbors to review a bid before deciding how to respond.

But Meyer cautions that most of your neighbors will probably lack the up-to-date information needed to guide you. What's more, they may be biased in their thinking and overestimate the value of the property.

Godi says a trustworthy real estate agent is typically your best source for sage counsel when you're attempting to ensure that a bid on your home is up to its true market value and that all the clauses in the document are acceptable.

"I go line-by-line through any offers my sellers receive," Godi says.

As he notes, each year so-called "standard" sales contracts become more complex and lengthy, as more mandatory disclosures are added. Yet often the most troublesome provisions involve nonstandard language.

"You have to be especially careful with handwritten clauses that are inserted in a sales contract by buyers or their agent," Godi says.

He advises those seeking a second opinion on a bid to have it reviewed by a lawyer who specializes in real estate.

"You don't want an attorney who does divorces or bankruptcies doing your real estate transactions. You need someone who really knows real estate law," Godi says.

However, he says you probably won't want your lawyer directly involved in negotiations with potential purchasers. The problem with that is that your buyers may think they also need an attorney, which can lead to an adversarial situation that might ruin your deal, he says.

-- Beware of special conditions attached to an offer.

In areas where demand for homes outstrips supply, Meyer says it's rare for potential buyers to risk making their offer conditional on finding a buyer for their own property.

But sometimes -- even in a hot seller's market --buyers may attempt to make an offer contingent on the closing of a pending deal for the sale of their current home. Even this provision can prove problematic, Meyer says.

Prior to signing such an offer, he recommends you ask your listing agent to obtain a copy of the contract for your buyers' deal to ensure that all the appraisal and home inspection issues have been resolved. Also, try to find out if firm financing is in place.

Remember that if your buyers' deal falls apart, the domino effect could topple your deal too.

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

Accompanying any good contract offer for your home should be a letter stating that the would-be purchasers have been pre-approved for a mortgage. That means an established lender has not only checked their credit reports but has verified that they possess the wherewithal to purchase a place.

"What you need is proof that the buyers have the necessary income and assets," Godi says.

Nowadays, the terms "pre-approved" and "pre-qualified" are often used interchangeably. But, as Godi says, a pre-qualification letter "isn't worth the paper it's written on." That's because the borrowers have yet to give the lender the bank statements, W-2s and pay stubs needed to show they can afford your home.

Even a pre-approval letter is not a watertight guarantee that the lender will fund a mortgage for a particular set of buyers.

To protect his sellers, Godi routinely calls the lender who's signed a pre-approval letter to ask about the buyers' financial status.

If the lender gives vague or general answers to his questions, Godi says he goes a step further and requests actual copies of the buyers' documents, including tax returns.

"You've got to be sure any buyers who wish to purchase your place, including cash buyers, have all their financial ducks in a row. Otherwise, what seems like a wonderful deal could totally collapse," he says.

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