A couple in their late 30s are in a state of panic. They've sold their three-bedroom townhouse, but can't seem to find the sort of affordable house they're seeking for their growing family.

"A shortage of inventory is their biggest problem. But they're also panicked about the potential for much higher mortgage rates, which would reduce their buying power in the future," says Ashley Richardson, the real estate agent working with the couple in this true story.

In many ways, buyers are now confronting a "perfect storm." In popular neighborhoods, affordable properties remain scarce. Meanwhile, federal spending projections for the incoming administration have led many economists to project the possibility of significantly higher future mortgage rates.

"This couple has just 40 days to be out of their townhouse," says Richardson, who's affiliated with the Council of Residential Specialist (www.crs.com).

For this couple and other wannabe trade-up buyers, she says the costs of delaying a purchase could be considerable. The expenses associated with a temporary rental can mount quickly, as can costs related to storing household items. And those who delay also face the possible risk of higher mortgage payments.

Tom Early, a veteran real estate broker, stresses that no one can be certain about the future trajectory for mortgage rates. But he says it could still be better to buy sooner rather than later, assuming you can find an available home that meets your requirements.

Here are a few pointers for buyers seeking a fair deal in the current market:

-- Educate yourself on local property values before you bid.

Eve Alexander, a longtime broker who works solely with homebuyers, says they need context on prevailing values to make certain they don't bid too much.

"For comparisons, try to identify five to 10 comparable properties that have sold recently in the area where you're looking," Alexander says.

If you're seeking to buy in a neighborhood with widely varied properties, it's helpful to compare the homes on your list on a price-per-square-foot basis. Then adjust for differences in size and home features, such as a larger garage or extra bathroom.

After estimating the current market value of the home you wish to buy, it's time to decide how aggressive an offer you want to make. Alexander says that will depend on how enamored you are with the home.

"It's always easier to negotiate without emotion if you can find second and third choice houses you also like," Alexander says.

Once you've made a firm decision on your bid, she recommends you attach a brief but friendly letter that explains your position and draws on comparable sales data to support it.

-- Don't use comparables from "market testers."

Eric Tyson, co-author of "Home Buying for Dummies," says in every market there are a few sellers who won't budge from an unrealistically high price.

Tyson recommends you ask your agent to find out if previous offers have come in on your desired property. If the owners have already rebuffed one or more decent offers without so much as a counterbid, this indicates they'll probably resist reason with you, too.

The good news for buyers is that information on past offers is often readily available through the listing agent.

While there's no harm in trying to reason with market testers, Tyson says you can waste a lot of time and energy trying to budge people who won't even entertain a fair offer. Better to look for someone truly anxious to sell, perhaps because they're making an out-of-state job move.

"Locating a really willing seller is the key to finding a fairly priced house," Tyson says.

-- Attempt to find out about the seller's equity position.

Are you seriously interested in a home, but have yet to submit an offer on it? If so, Alexander says it's wise to inform yourself on the sellers' ownership stake before you bid. As she says, those with more equity have more potential room for compromise.

"What you're looking for are insights into the mindset of the sellers," Alexander says.

One source of clues on the owners' equity position can be found by searching local government land records. At the minimum, these records (usually available online) should tell you when the current owners purchased the property and the original price they paid.

"If the sellers bought the house a couple of decades ago and haven't refinanced, they should have a lot more equity," Alexander says.

-- Request that your agent pose questions to the listing agent.

When owners have an urgent need to sell, it's normally against their interest for that information to be broadcast to the world because it could weaken their bargaining position. Even so, Alexander says many listing agents will readily divulge such client information in response to questions.

Another way prospective buyers can gauge the sellers' level of motivation is to ask nearby neighbors. Alexander recommends that the buyers pick a weekend time to walk through the community, chatting with a few residents about the pros and cons of living there. In the course of the conversation, they'll likely tell you what they know about why nearby homes are for sale.

"In many cases, well-informed neighbors will be happy to give you the inside story," Alexander says.

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

At a pre-retirement bash thrown for a columnist at a big city newspaper, the writer enthused about the travel he and his wife would start just as soon as they sold their big colonial. But it took them more than five years to get that house ready for market.

Why the holdup? Because the couple, ambivalent about leaving the place where they'd raised their children, sorted through their belongings at a glacial pace. The biggest barrier involved several dozen crates filled with the columnist's newspaper clippings.

"Those clips were very symbolic of my 30-year newspaper career. I clung to those as if my reputation depended on it," he explained.

It took a lot of nagging from the columnist's wife --along with a flood that ruined many of the clips -- to solve the purging problem. Yet once the purge was done, the house sold promptly, finally giving the couple the funds needed to fulfill their travel plans.

Dorcas Helfant, a veteran real estate broker, has worked with many would-be retirees who've found it equally difficult to prep their properties for sale.

"For lots of these folks, one big problem is the vast number of possessions they've acquired during their tenure in the property," says Helfant, a past president of the National Association of Realtors (www.realtor.org).

Donna Clark, a real estate broker affiliated with the Council of Residential Specialists (www.crs.com), says another issue that can slow the sale of a property involves older homeowners who push back against the need for upgrades and repairs.

People of retirement age often have a strong desire to sell yet a resistance to taking the necessary steps. Here are a few pointers:

-- Keep your eyes on the prize.

Retirement dreams vary widely. But staying focused on retirement plans should help keep your spirits up as you do the hard work of preparing your property for market. To maintain your focus, Sid Davis, a real estate broker and author of "Adding Value to Your Home," says you may wish to take a brief vacation to the area where you'd like to live, whether that's a foreign country or a nearby town. A less costly approach is to attach a photo of your ideal destination to your computer monitor where you can keep it in mind.

-- Visit a few model homes.

Have you lived in your current home for many years? If so, you're likely very comfortable with your interior design and see no need to update it. But that's usually a mistake, says Clark, who's sold homes for more than 30 years.

One way to picture the sort of decor that contemporary buyers prefer is to tour model homes in new subdivisions.

"This is a shortcut to seeing the kinds of colors and designs younger buyers look for. You'll also see how well a house can look when it's free of clutter," Clark says.

-- Itemize the improvements that could help you sell well.

Would-be retirees who are eager to sell their properties should view key improvements as a wise investment rather than a needless sacrifice, according to Clark.

"A house is like a business. Sometimes you have to put some money into it to get more money out of it," she says.

Obviously, you're unlikely to recoup your outlays for major improvements -- like putting on an addition or installing a new fireplace. But Clark says several less expensive upgrades could be extremely helpful in promoting the sale of your home.

For instance, she says you'll want to refinish hardwood floors if they're beat up. And you'll want to replace carpeting in an out-of-date color.

"I had some clients with bright teal carpeting in their living room. It was clean and perfectly serviceable. But buyers who looked at the house couldn't get past all that teal. After the owners replaced it with light taupe carpeting, their house sold right away," Clark says.

Likewise, she says most sellers with vibrantly colored walls are well advised to repaint them in neutral tones.

"Pink walls don't belong in any house you're trying to sell. Nor do walls in deep red, vivid green or periwinkle blue," Clark says.

-- Avoid playing pricing games.

Many people heading toward retirement and the proposed sale of their home reject the pricing recommendation of their listing agent. In pursuit of more money, they decide to "test the market" with a higher price than their agent has proposed. After all, they reason, they could always cut the price later if necessary.

But this seemingly logical idea usually backfires, Clark says, because most buyers are acutely sensitive to housing values. They respond negatively to an overpriced property and may become so annoyed they won't even visit the place.

"The first two weeks after you list your house are key. If you don't price it right from the start, possible buyers will lose interest. Then even after you drop the price you may have to wait a long, long time to get it sold," she says.

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

A couple heading into their late 60s are delighted that their suburban house has risen in value substantially. With their offspring grown and away, they could easily sell the place, which has four bedrooms and a huge backyard. But they have no intention of downsizing anytime soon.

"They like their house and dream of passing it to their children one day," says Daren Blomquist, the couple's son-in-law.

As a real estate analyst, he cites the example of his in-laws to illustrate how many in the baby boom generation have been clinging to their big family homes, despite equity gains that have occurred in many areas due to the improving economy.

"We're not yet seeing a dramatic trend toward downsizing," says Blomquist, a senior vice president with Attom Data Solutions (www.attomdata.com), which tracks real estate markets throughout the country.

But despite the ardent wish of many boomers to hang on to their family homes indefinitely, he predicts an increasing number will soon change their minds or be forced to downsize, however reluctantly, due to medical, financial or family issues.

"Very often it takes a triggering event, like a major health problem, to cause people to sell a home they've owned for many years," Blomquist says.

Whether you're a homeowner who's excited to downsize or you're doing so involuntarily, the emotions can be intense.

Ron Phipps, a veteran real estate broker, says he's "always amazed" at how difficult it is for his clients to disconnect from any residence where they've lived for a lengthy time, even if doing so by choice.

Part of the problem for downsizers is that the moving process is inherently disruptive to their habits and patterns of living.

"It's fascinating how we humans are wired emotionally and bond to the places where we live," Phipps says.

Here are a few pointers for downsizers:

-- Seek an ally to help you begin the downsizing process.

Vicki Norris, a former real estate agent and organizing guru, says it can take up to 24 hours of work to de-clutter the average-sized room. To avoid becoming sidetracked, she says many home sellers need an ally to help them view their possessions objectively and let go of things they can't take with them when they move.

"When you have to downsize, your whole life is upside-down. It's tremendously stressful. So it's good to have someone there with you to help you stay focused and create an organized strategy," says Norris, author of "Restoring Order to Your Home."

For instance, you might need someone who is objective to help you face the reality that you'll have to give up a prized dining room suite that won't fit in your new place and that would make your space look crowded to prospective buyers.

In an attempt to tackle the downsizing project, many people turn to family members. But Norris says you're better off with a professional organizer. One source for referrals is the real estate agent who you expect to list your property. Another is the National Association of Professional Organizers: www.napo.net.

Are you unable to cover the expense of a professional organizer's services? If so, Norris suggests you ask a friend to come by to assist, if only to help you structure an action plan and gain momentum toward your move.

-- Ask family members if they want some of your memorabilia.

Older downsizers often hang onto nostalgic items they believe their grown children might want someday. But Norris says many parents believe their offspring will want many more things than they do, including their childhood storybooks and elementary school sports trophies.

"Typically, Mom and Dad hang on to things the kids don't really want," says Norris, who suggests that downsizers ask grown children what items they value.

-- Make a memory book with photos of your place.

When Norris's parents retired and put their family home up for sale, they did so voluntarily. Even so, they found it emotionally challenging to let go of a residence where they'd lived for 28 years.

Still, the process of downsizing was eased after their listing agent gave them a book of photos showing all their rooms and furnishings just as they looked before the home was staged for sale.

"That way they were able to seal their memories," Norris says.

-- Give away functional items you can't take with you.

As they plow through their property room by room, most downsizers encounter many items that crowd their space. Whenever possible, Norris encourages donations of serviceable items to a nonprofit institution that will put them to good use. For instance, you could donate unused musical instruments to a school serving low-income families.

"It can be incredibly rewarding to know your excess belongings will meet the needs of others rather than get tossed in the trash," Norris says.

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