Spending their retirement on home remodeling, a couple in their 60s poured money and sweat into their 1928 cottage. They transformed a modest two-bedroom house into a sprawling place with five bedrooms and a mammoth gourmet kitchen that adjoined a large great room.

But after health problems compelled the couple to move to a one-level apartment, they put the property on the market at what they later realized was an inflated price. By the time they finally adjusted the price, the place was so stigmatized that most buyers in the area had lost interest.

The couple ultimately accepted an offer from a single mother with three children who hadn’t been pre-approved for a mortgage. But after it was revealed that the woman had too poor credit to get a home loan, the deal fell through and the house had to go back on the market.

This true tale illustrates several painful lessons for sellers, says Joan McClellan Tayler, a longtime realty company owner. One is that trying to “test the market” with an aggressive price usually backfires -- even in areas where inventory is in short supply.

“A shortage of inventory won’t bail you out if you’re greedy. These days, buyers are too smart to overpay,” Tayler says.

Another lesson underscored by this example is that it’s risky to accept the bid of buyers who’ve failed to go through the mortgage preapproval process, unless those purchasers are making an all-cash offer.

Want to increase your odds of selling well? Here are a few pointers:

-- Choose a seasoned agent for your listing.

Tayler says too many sellers take a casual approach to picking an agent, noting that some make the mistake of hiring a relative, a friend or a young agent looking to get started.

“A lot of the sellers fail to understand that even in a strong market, it takes complex skills to do a great job selling real estate,” she says.

Tayler recommends that sellers opt for an agent with experience in handling lots of different deals. Those with a track record are most apt to sniff out problems before they happen.

If for personal reasons you’re determined to choose a newcomer, she suggests you ask that agent to share the listing with an established pro from the same office.

“With two agents on your side, you’ll benefit from both their strengths,” Tayler says.

-- Consider only prospects who are financially qualified to buy.

Sharp sellers are careful to check the financial standing of would-be purchasers.

“Who wants a deal to fall through because the buyers lack the wherewithal or credit to get it to the finish line?” says Eric Tyson, a personal finance expert and co-author of “House Selling for Dummies.”

Before accepting an offer, sellers should insist on seeing a genuine pre-approval letter from a known lender, Tyson says. This should establish that the prospective buyers have had their credit checked, their employment confirmed and their assets verified.

In addition, prospects can be asked to supply other details about their creditworthiness, such as their credit scores. The most common of these, known as FICO scores, range from 300 to 850. The higher that number, the more likely are borrowers to get the loan they need to close the deal.

“To avoid insomnia, look for buyers with scores of 700 or above,” Tyson says.

Bidders can obtain reports on their credit scores from a website of the Fair Isaac Corp. (myfico.com).

-- Prepare for issues that could arise during an inspection of your home.

Even in tight markets, many purchasers exercise their right to a home inspection. And many use the process as leverage to renegotiate the deal.

“Even in a tight market, if the inspector finds substantial defects in the house, the buyers could attempt to use these findings to revisit the terms of the deal,” Tyson says.

Homeowners should never try to talk buyers out of a home inspection. But smart sellers will consider paying for their own inspection even before the property goes on the market.

“The person you hire for a pre-sale inspection is unlikely to find all the same small problems that the buyer’s inspector locates. But both should spot the really major problems -- like a failing roof or electrical system,” Tyson says.

-- Seek to avoid troublesome buyers.

Not all home sellers can be choosy about the offer they select. But if you’re reasonably certain you’ll have more than one bid from which to pick, Tyson says you should seek to avoid cutting a deal with difficult people.

You may not have any direct dealings with your prospective bidders. But your listing agent or others might observe them when they visit your place. And their behavior can be very telling.

One telltale sign of difficult people is that they often make negative remarks when visiting a property. Though you’re likely to not be present for showings, your listing agent should learn of these unpleasant comments and pass them on to you.

By avoiding such prospects, you could spare yourself a lot of grief.

“If you’re lucky enough to get multiple bids, you can be pickier about the buyers you choose. If possible, resist troublesome folks who might nickel and dime you all the way to closing,” Tyson says.

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

Home prices have been steadily rising for months, with more gains ahead. Moreover, mortgage rates are expected to gradually climb through 2018. Yet despite these affordability challenges, this could prove a very strong year for property sales.

That’s according to Frank Nothaft, the chief economist for CoreLogic, a major information and analytics firm with special expertise in real estate. Why the optimism? Nothaft points to strong expectations for the economy in the new year.

“Workers are feeling secure in their jobs, and we’re seeing some real income growth, all of which makes buyers more confident in their economic well-being," Nothaft says.

Another positive: "Millennials" -- adults now in their late 20s to early 30s -- are approaching their prime home-buying years.

It’s true that many millennials are breaking into homeownership later than did their parents, who typically bought their first property in their early 20s. But Nothaft says they are equally driven to own.

“Because the median age for homebuying is now 32, there’s a great tailwind coming with the millennials,” he says.

But a big issue for would-be buyers involves rising property prices, which Nothaft says will increase an average of 5 percent during this year. That translates, he says, “to a further erosion of affordability.”

His key piece of advice for those who wish to become first-time homebuyers: “Get your financial house in order.” That means making sure your credit history is accurate and your credit scores are strong.

“You want to be qualified and ready to pull the trigger when you find the right house,” Nothaft says.

Here are a few other pointers for buyers:

-- Do a thorough review of your current financial situation.

Eric Tyson, a personal finance expert and author of “Mind Over Money: Your Path to Wealth and Happiness,” says one major obstacle to saving for a house is uncontrolled day-to-day spending. But before you can decide how to reallocate your income, he recommends you review where your money has gone, category by category, over a recent three-month period. This can be done either with pen and paper or such personal finance software as Quicken.

“Lots of folks ... fail to realize that small expenditures -- like lattes at Starbucks -- can quickly mount up,” Tyson says.

-- Create a spending plan that lets you save for your home-buying goal.

Once you know where your money is going, it’s time to create a budget that lets you meet your essential needs while still amassing savings for your closing costs and down payment.

“No budget should strip you completely of small indulgences, or you might go off the rails due to a feeling of privation. But when reordering your priorities, always keep your major priorities -- like homeownership -- in mind,” Tyson says.

He recommends you closely evaluate every segment of your spending in search of possible reductions.

For example, if you are renting in a high-end building, perhaps you could move to a more modest apartment when your lease is up.

You may also find fat to trim from your transportation spending. If commuting solo by car is costing you more than necessary, why not switch to public transit or carpooling, if only for a finite period?

Your food expenditures may also be out of line.

“It sounds simple, but people are often shocked at how much they spend eating out,” Tyson says.

-- Tackle your debt aggressively.

For many students, assuming school debt is nearly unavoidable -- particularly for those who attend graduate or professional school.

But even after their schooling is complete, many millennials continue to accumulate credit card debt, and at interest rates much higher than their student loans.

Of course, paying down credit card debt can require severe self-sacrifice. But, you’ll find it much easier to amass your down payment when you’re no longer juggling card payments.

Likely, you won’t need a financial adviser to straighten out your finances, but you can find useful guidance through books on the topic. One that Tyson recommends: “Your Credit Score: How to Improve the 3-Digit Number That Shapes Your Financial Future,” by Liz Pulliam Weston.

-- Realize that timing on home-buying is a personal matter.

At this point in the real estate cycle, with prices rising steadily and loads of competition for entry-level housing in popular metro areas, some frustrated millennials are postponing their homeownership dreams. But others continue to persevere until they achieve their target objective.

If you’re in the stay-with-the-program camp, Tyson says you should be wary of discouraged friends who try to dissuade you from pursuing your plans.

“Only time will tell whether you’re better off buying at this stage of the market. But don’t let disagreements on timing ruin your friendships. As always, reasonable people can disagree,” he says.

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

Do you plan to sell a home in a torrid real estate market -- a place where prospects line up with offers? Are buyers there so eager they’re willing to waive the right to a home inspection?

If so, you might assume you could take a passive approach to the selling process and do just as well as neighbors who invest time, energy and money to present their place for sale in the best possible condition.

But Dylan Chalk, a home inspector who’s done 5,500 inspections since entering the field in 2003, says homeowners who take a proactive approach to selling fare far better than those who are passive, even in very hot markets.

“Just because your buyers don’t hire an inspector doesn’t mean they won’t be disappointed later when they discover problems with your property. ... If buyers run into problems later, that could ruin an otherwise smooth sale,” says Chalk, who’s affiliated with the American Society of Home Inspectors (homeinspector.org).

“You want to take control of your sale, not have it take control of you,” says Chalk, author of “The Confident House Hunter,” a book for buyers.

It’s true that an experienced listing agent can quite easily identify minor repairs that need to be done before your place is shown for sale. But it often takes the expertise of a home inspector to detect larger issues.

Chalk is a strong advocate for what’s known as a “pre-listing home inspection.”

“Often, simple things can come up on a home inspection that can become much more complicated when the clock is ticking under a pending offer. You want to attack tricky repair items on your own time frame,” he says.

R. Dodge Woodson, author of multiple books on home repairs and remodeling, says many sellers -- especially those in inventory-tight markets -- are reluctant to go forward with pre-sale repairs because of the cost and inconvenience involved.

“Most people are extremely busy and finding the right contractors can be very time-consuming,” he says.

Still, he says it’s important to spend the time it takes to search for the right contractors for your repair work.

Here are a few pointers for sellers:

-- Make a wide search for the best available contractors.

Woodson advises against using online advertising to hunt for contractors. A more reliable approach, he says, is to seek recommendations from friends, neighbors or work associates.

“Ask everyone you know for names. Consider this a treasure hunt,” Woodson says.

Besides those in your immediate circle, Eric Tyson, co-author of “House Selling for Dummies,” says you may wish to garner contractors’ names through the real estate agent with whom you are working to list your home.

“Realtors can be really good sources because they have lots of interactions with contractors. They’ll hear complaints if a contractor does a lousy job,” Tyson says.

Also, contractors may be more attentive to your project if they know you might complain about their work to the agent, which could hurt their chances for repeat business.

Yet another way that Tyson suggests you search for referrals is through an online consumer rating service, such as Angie’s List. This company provides reviews on service providers in more than 200 metropolitan areas.

-- Get an ample number of estimates for large jobs.

Woodson, who has worked much of his career as a licensed plumber and has also run his own home improvement company, strongly recommends that homeowners obtain five estimates for any job expected to cost more than $1,000.

Why five estimates? Because experience has taught Woodson that consumers need a range of bids to gain perspective on pricing.

“What you usually want is a contractor in the middle of the pack on price. You can throw away an estimate from anyone who comes in 25 percent or more above or below the others in the pack. The guy at the top is charging too much, and the one at the bottom is probably cutting corners,” he says.

-- Learn more about a contractor by visiting other clients’ homes.

After you’ve narrowed the contractors’ field with a comparison of price estimates, you may think your next step is to ask any company you’re considering for references. But Woodson says this is usually a “pointless exercise.”

“You don’t know if that reference is really someone’s brother-in-law or maybe someone else the company hired to say good things about them,” he says.

Also, Woodson says it’s a mistake to rely on photos the contractor has sent to you via email.

“How do you know that these pictures show the contractor’s real work? Even if they do, the photos could have been doctored,” Woodson says.

To get a truer, better sense of a contractor’s work, ask to visit homes where the firm is now working or has recently completed jobs.

“Sure, someone from the company has to call clients to get their permission for you to come over. But even so, the company shouldn’t balk at letting you see their work. If they do, you’ve got to wonder what they’re hiding. This is a big red flag,” Woodson says.

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