Many homebuyers are drawn to condo ownership by the simplicity and convenience of living in a building where most upkeep is handled by a maintenance staff. But real estate experts urge condo buyers to exercise caution to select a unit with strong resale value, especially if they don't plan to hold the condo for long, or their living situation necessitates a need for more space or a major relocation in the near future.

"The condo market has historically been more volatile than the market for detached single-family homes. That's why it's important to think about your time horizon when buying a condo," says Aaron Terrazas, a senior economist for Zillow, which tracks real estate markets throughout the country.

Here are a few pointers for those intending to buy a condo:

-- Seek an area with a strong employment base.

Fred Meyer, a veteran broker and appraiser, says the vitality of a local real estate market is usually closely linked to the employment strength of the area. But as he notes, the buyers of condos shouldn't count on a single employer to keep the local economy afloat.

"You don't want to buy in a 'one big company' town that would be badly hurt if that single employer closes," he says.

How can you investigate the strength of the local economy?

"If you want to get sophisticated in your research, go to the offices of the Chamber of Commerce and ask them what's happening to jobs in the area," Meyer says.

By avoiding an economically depressed area, you not only enhance your chances of owning a salable condo -- you also increase the likelihood of living in a vibrant area where you'll be happy.

-- Use both objective and subjective measures to judge any condo complex.

As Meyer says, your emotional reaction to a condo building can be helpful in the selection process. But you, along with your real estate agent, will also want to search out data that helps you analyze the pros and cons of buying in a particular building.

"Look at the resale history for the building going back for as long as four years. Notice especially the median number of days that it takes to sell units in the building. The more days it typically takes to go from list to sell, the less liquid the building," Meyer says.

Also, he says you should be sure to check the "reserves" of the building, which translates to the amount of money owners there have set aside for key repairs and renovations.

"If the building needs a new roof and there's no money available for this, all the owners could be hit with a big special assessment. A poorly financed building can become run-down, making it less desirable for future owners," Meyer says.

-- Avoid buying in a building with rock-bottom condo fees.

Nearly all condo buildings impose fees on residents. Among other expenses, these monthly charges cover the cost of routine upkeep on a building and its grounds, along with support services, like a concierge at the front entrance.

Tom Early, a real estate broker and past president of the National Association of Exclusive Buyer Agents, says condo buyers sometimes shop for a building with the lowest possible monthly fees to help curtail their expenditures. But seeking out a building with rock-bottom fees could be a mistake.

"Nearly always, you get only what you pay for in condo fees. A building with surprisingly low fees might actually decline in value, due to poor maintenance. That could make your unit hard to sell in the future," he says.

-- Steer clear of a building with a high proportion of renters.

Homebuyer advocates are wary of buildings in which a large percentage of the units have been rented out by their owners.

"Owner-occupants feel a natural pressure to ensure that a building is adequately maintained and has plenty of money set aside in reserves for future repairs and improvements. Renters feel no such natural pressure," Meyer says.

What percentage of owner-occupants is sufficient? That depends on the location of the building. In most cases, Meyer says you'll want to see more than half the units occupied by owners. However, this rule may not hold in a resort community where seasonal rentals are the norm.

Even though it's not wise to choose a building with a large number of renters, Meyer says it's also important to avoid a building that prohibits owners from renting out their units should they wish to do so.

-- Shop wisely for the right unit within a condo building.

Even in the ideal building, not all apartments are created equal.

Meyer says it's usually unwise to buy one of the most expensive condos in a building.

"Buying one of the least expensive condos in a building with much larger and fancier units will help hold up the value of your property over time. That means in the future you'll probably be able to sell more quickly and for more money. In real estate, you always want progression in values rather than regression," he says.

-- Make sure you love the condo you're buying.

Statistics yield a lot of information about the desirability of a condo building. But your emotional response to a building can also be telling, Meyer says.

"Make sure you really love the condo with both heart and soul. If you love it wholeheartedly, chances are good others will love it, too," he says.

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

Eric Tyson and Michael Crowley are both empty nesters, with offspring away at college. Both are owners of whopper-sized houses. But the two have very different visions of the best housing situations.

Crowley, a divorced real estate broker, lives alone in a 5,700-square-foot Victorian house with three family rooms, four bathrooms and six bedrooms. Most of the bedrooms are empty of furniture and never used. That's one reason he's looking forward to the day his son graduates from college. Then he'll sell the house and move to an 1,100-square-foot condo he already owns.

"I can't wait to be free of a mortgage and all that home maintenance so I can travel more," says Crowley.

Tyson, a personal finance author and the father of three college-age sons, owns a traditional 5,500-square-foot house. But he and his wife have no intention of downsizing. They admit to a sentimental attachment to the suburban property where they raised their children, and love owning a place with ample elbow space to accommodate visiting friends and family members.

Both Crowley and Tyson acknowledge that ownership of a huge house imposes a lot of costs in terms of time, money and energy. Both face high utility bills and rising property taxes. For Crowley, those expenses are a deal-breaker. Not so for Tyson, the author of "Personal Finance For Dummies."

At this point in the economic cycle, there are many crosscurrents of thought among Americans of different ages as to whether it's better to live small in a low-maintenance housing unit or to enjoy the benefits of a large property with less convenience, but loads of living space.

For buyers with the wherewithal to choose between ownership of a compact place or a big one, here are a few pointers:

-- Consider both the pros and cons of the two options.

Mark Nash, a longtime real estate broker and author of "1001 Tips for Buying and Selling a Home," says nearly all buyers face trade-offs.

"Making a priority list is the absolute key. You have to decide which features are the most important for each person in your household. Your best home-style is going to be determined by your lifestyle," he says.

If you're married or living with a partner, Nash recommends you sit down with the other person and each rank your housing priorities. Then compare notes and, if there are differences, compromise.

Though Nash is single, he faced his own set of trade-offs some years back when he decided to sell his fancy 3,200-square-foot house in an upscale city neighborhood in favor of a 1,000-square-foot condo-apartment 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.

"By downsizing to the condo, I bought myself some breathing room financially. At the time, going smaller was definitely the right decision for me," Nash says.

His housing transition came with some sacrifices. Though he liked his neighbors in the condo complex, he missed the greenery that surrounded his city house. He also missed the privacy of a single-family property.

"Sometimes I wanted to be alone, but that was hard living so close to other people in a condo building. Every time I stepped into the hallway, people wanted to talk. I'd also hear noise coming from their apartments, which felt like a minor invasion of my privacy," Nash says.

-- Ask yourself how much space you truly need for entertaining.

Among those who hanker for a large home are buyers who love to throw parties, as well as people who believe that home entertaining is central to the fulfillment of their professional obligations.

"I know CEOs who think they must have a very big place to show off to clients or colleagues. They feel the need for this, even if their spouses don't want all the complications of big house upkeep," Nash says.

If home-based entertaining with large events 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 interested in the financial benefits of living smaller, Nash suggests you consider some less expensive options for your parties.

"Why not take your guests to your favorite restaurant and rent a space for your parties? That could be a lot less expensive than maintaining a big house just for entertaining," he says.

-- Remember your storage needs before you buy.

Sid Davis, a real estate broker and author of "A Survival Guide For Buying a Home," says many homebuyers like big houses because they place a premium on having lots of storage space.

Assuming you can afford it, Davis says buying a large house for extra storage space could be a reasonable idea. After all, a large house could save you a significant sum over the rental expense required for the long-term use of a self-storage unit.

But he cautions against the assumption that ownership of a big house will let you keep accumulating ever more possessions.

"Face it, no matter how big your storage areas are, eventually you'll run out of space if you keep shopping without ever purging. So don't deceive yourself about that reality," Davis says.

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

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.)