The nation’s housing market had a quiet summer, with many sellers and buyers waiting on the sidelines for mortgage rate drops. But the mood changed dramatically on Sept. 18 after the Federal Reserve lowered its benchmark interest rate a full half-point, encouraging mortgage markdowns.

“Lower mortgage rates are creating inflated hopes among some sellers. Naturally sellers want top price. But don’t rely on wishful thinking when pricing. Never forget that it’s the market that determines value, not you,” says Stacy Berman, who’s sold homes in the Washington, D.C. suburbs for 22 years.

“Buyers look at many more homes, so they’re more price-aware than sellers. Price too high, and your house could get a stigma and just sit there unsold. It’s better to list just 10% or 15% below market value. That could cause an escalation in bidding, yielding a better result so you can move on with your life,” Berman says.

She cites the case of a federal contractor in her 50s who’s learning the hard way the impact of overpricing her small one-bedroom condo.

“This woman really needs a two-bedroom apartment because her 14-year-old daughter is now staying in a small alcove off the living room. But the owner is insisting on a list price $50,000 over what the condo is worth, which she’ll never get. Meanwhile, the place is languishing unsold,” Berman says.

One issue for sellers is that they vividly recall how at the height of market demand, some neighbors could command stellar prices through bidding wars. That was especially true during the pandemic.

But even in some popular neighborhoods these days, the bargaining power of sellers is weakening a tad as buyers gain more sway and negotiate more intensively.

Jeb Smith, who sells homes in Orange County, California, says that many owners are unsure how to price properly in the midst of a rapidly evolving economy. That’s particularly true in neighborhoods with widely divergent property types.

As always, pricing your home for sale can prove stressful.

“Make no mistake, there’s a huge emotional factor when it comes to pricing. Due to the pride of ownership, people always think their place is worth more than the one down the street that sold last year after a big bidding war. That’s just human nature,” Smith says.

Here are a few pointers for sellers:

-- Consider a list price just one notch below prevailing market values.

Surprisingly, sellers on a tight deadline can often receive more for their property if they price it just a few percentage points below its apparent market value, Smith says.

“Given the internet, buyers are alert to fair market pricing. That’s why pricing slightly under market can generate lots of interest among buyers,” he says.

-- Examine recent sales in your area before setting your price.

Even before your home is listed and open for showings, your agent will likely recommend an asking price. But before accepting any pricing recommendation, all sellers should do at least a nominal amount of research.

“Tell your agent to give you a list of nearby properties still under contract -- the more current the better. Then ask the agent to look into details about the properties that sold --including whether they’ve been updated. Also drive by the sold houses for comparison purposes,” says Ashley Richardson, who sells properties through Sotheby’s International Realty.

“Remember, it’s always the owners who have the final say on price,” Richardson says.

-- Find a seasoned listing agent.

Some sellers find the anxiety associated with home-selling decisions distressing. In that case, it’s often wise to hire an experienced agent who’s worked through many transitional markets, says Eric Tyson, coauthor of “House Selling for Dummies.”

“Seek an agent with a history of recommending correct pricing from the outset, not after a series of price cuts,” Tyson says.

Contacting the managing broker of a local real estate office is one way to identify a skillful agent. But make sure you find one with an impressive track record selling your type of property in your price range.

“Also, it’s an excellent idea to contact references who’ve previously worked with the agent you have in mind. Ask these references how well the agent did on pricing recommendations,” Tyson says.

-- Hasten your home sale through delegation.

Many owners devote several months to prepping their place for sale. They clean, sort through their clutter, clip outdoor shrubbery and paint wherever needed.

But if you’re struggling to sell quickly -- perhaps due to a mandatory move -- you may have no more than a few weeks to get the home ready for showings.

One obvious way to reduce your prep time is to hire contractors for work you might normally do yourself.

“If you can afford it, hire pros for both cosmetic work and repairs. Resist the urge to save money with do-it-yourself work such as painting and carpet cleaning,” Tyson says.

Don’t ignore the need for decluttering and in-depth cleaning.

“The winter holiday season is soon approaching. So always keep in mind that time is money -- particularly if you have to move quickly and hate the idea of your house going unsold for a lengthy time with all the carrying costs that entails,” he says.

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

A Los Angeles couple in their early 70s are on the threshold of retirement. The wife will soon exit her career in social work, and her husband, a pediatrician, will soon leave medicine. But unlike many of their friends, they have no intention of downsizing.

“We actually want more square footage rather than less. We’re keeping our house in L.A. but also building one in Honolulu. The Hawaii place is our retirement passion,” the doctor says.

On paper at least, the couple’s dual-house strategy makes sense for their blended family. Together, they have four grown children who are all married. They also have two grandkids. The problem is geographic dispersion. Family members are spread all over North America.

“We’re hoping our Hawaiian place, walking distance to beautiful beaches, will prove a magnet for big family gatherings,” the doctor says.

Obviously, few retirees can afford a second home in Hawaii, not to mention frequent jet travel. But for those who can swing it, upscaling can be rewarding if it means more interaction with family. Still, real estate experts caution upsizers to keep expectations in check.

“Just because you acquire a bigger place in a fancy setting doesn’t mean you’ll attract all your family. It all depends on peoples’ schedules and the quality of your relationships,” says Michael Crowley, an independent real estate broker in Spokane, Washington.

Crowley also urges those wishing to upsize in retirement to think through the financial implications, especially if they’d have to take out a new mortgage -- something the L.A. couple must do to fund their dream.

Though, traditionally, most seniors have aspired to enter retirement free of mortgage debt, an increasing number are taking on home loans late in life, according to a study by the Brookings Institution, a Washington, D.C.- based think tank.

Financial planners say retiring with debt is a risky proposition for some seniors, especially if they rely heavily on Social Security. Heavy dependence on fixed benefit payments can make seniors more vulnerable to financial reversals if serious health problems develop. Even so, many older homeowners have enjoyed increases in their net worth that justify upscaling.

Due to prudent investments, the L.A. couple are comfortable adding mortgage debt. For them, a second home makes more sense than buying a bigger place in California. But other upsizers choose to buy larger in a community closer to family.

Here are a few pointers for seniors who want more square footage:

-- Aim for the kind of home your family would like.

If the vision of a family magnet appeals to you, Sid Davis, a Utah real estate broker, says you’ll want the larger property or second home in an area convenient to as many family members as possible.

“Take stock of your family and their future work plans,” he says.

But what if your children have careers in the military or foreign service and might even be moving overseas? Then you may want to delay a move until they settle down more permanently.

“You can’t chase your adult children all around America and the world. Better to pick a spot that’s easily accessible for them to travel to you,” says Davis, author of “A Survival Guide for Buying a Home.”

-- Think about the geographic setting.

Perhaps you and your partner would like to move to an age-restricted community with lots of amenities. Yet you’d also like to see your kids and grandkids as frequently as possible. If so, you should give a second thought to this plan.

“Rather than moving in with other seniors, pick a multi-generational area with more recreational attractions for the kids,” Davis says.

Consider buying a house near a neighborhood swimming pool in an area where lots of young families live. You might also look for an area well suited to fishing, horseback riding or hiking.

“Quiz the kids on the kinds of activities they really enjoy. Also, don’t forget to ask the teenagers what they think,” Davis says.

-- Consider properties with the right features for overnight family visits.

Do you intend to upsize to a location that will draw family members for extended stays? If so, you’ll want the right home features to accommodate everyone who comes to visit.

“Look for a house with at least three bedrooms and ... as many bathrooms as possible. The kids can always double up in the bedrooms. But if you have only one bathroom, you’re bound to have bottlenecks,” Davis says.

Also, he recommends that those seeking to create a family mecca look for large common areas in their upsized property.

“People love to hang out in a big kitchen with places to sit and talk. That’s why upsizers often go for a large eat-in kitchen connected to an even larger 'great room,'" Davis says.

-- Remember the realistic need for good airport access.

Do you yearn to retire to a faraway place and yet still wish to see extended family as often as possible? If so, Davis says you’d be well advised to upsize to an area with good transportation access.

“[L]ook for an area served by an excellent airport. Search for an airport that serves as a hub for at least one airline with lots of service and decent fares,” he says.

Granted, you won’t want to live so close to an airport that you’ll be tormented by the noise of planes flying overhead. Yet you’ll want to be close enough to the airport that family visits aren’t too taxing.

“If you’re counting on air travel for family get-togethers, try to live within a 90-minute drive from a good airport,” Davis says.

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

Real estate agents say many homebuyers who aspire to larger housing are playing a waiting game.

These are owners who feel cramped in their starter homes. They made it through the pandemic in small, crowded quarters. But many now have growing families -- including a dog or two -- they wish to accommodate. Others seek dual home offices where both partners can have ample space for telework.

But despite craving more square footage, they’re holding off on a trade-up move until later this year or early next year. One major reason is their expectation that mortgage rates could fall more in the coming weeks. Another influence is that the presidential election could potentially affect the economy.

“Elections don’t usually affect real estate sales. But that’s different this year. So many voters think the stakes are high and tax policies could change a lot,” says Mark Nash, author of “1001 Tips for Buying and Selling a Home.”

One nagging concern that’s troubled buyers for several years is the shortage of available properties. But the inventory problem is now reversing as an increasing number of owners are putting their homes up for sale.

Indeed, available inventory has been expanding every week for more than 40 weeks -- with an especially big bump this past week, says Hannah Jones, senior economic research analyst for Realtor.com, the home listing service.

She and other economists are optimistic that home sales will rise by the first quarter of 2025.

“This summer’s housing market was a bit lackluster, but falling mortgage rates may infuse some energy yet,” Jones says.

Housing specialists cite still another factor that could encourage increased home sales activity in the coming months. That’s the sizable pent-up demand for larger properties among starter-home owners.

“One universal among young Americans is their preference for large, open-concept housing,” says Nash, who long sold homes in the Chicago area.

Here are a few pointers for those who wish to acquire a larger home at a fair price:

-- Find out as much as possible about the owner’s position.

“Before making an offer on any property at any time, you’ll want to learn as much as you can about the sellers’ situation. Remember that information is power when you negotiate,” Nash says.

He suggests that would-be purchasers ask their real estate agent to research public records to determine when the present owners bought their house, what they paid and how big a mortgage they took out.

If they bought before the pandemic started in 2020, the odds are good they still have substantial equity, unless they gutted most of that with a big home equity loan or a cash-out refinance.

“Sellers who have positive equity have more latitude for bargaining. They can cut you a good deal and still move away with a check in their pocket,” says Tom Early, an Ohio real estate broker.

-- Have your buyer’s agent ask direct questions to the listing agent.

Listing agents are sometimes surprisingly candid when responding to questions about their clients’ situation.

“If the owners are under extreme pressure to sell, the listing agent may even tell your agent their actual bottom-line price to let the house go,” says Early, a past president of the National Association of Exclusive Buyer Agents (naeba.org).

But what if the sellers are not under duress to sell quickly? That, too, can be useful in setting the pace for your negotiations.

Early, an Ohio real estate broker, recalls clients who were trying to buy an oversized family home from a retired couple who wished to move to their out-of-state vacation property. Because the sellers owned their primary residence free and clear, they could afford to wait. So the clients paced their negotiation with timing in mind, Early says.

-- Hold out for the big price drop on a “stale listing.”

Compared with a year or two ago, many more home sellers are pricing their properties at their true market value, or possibly even slightly below. But even now, there are a few laggards in the group who insist on listing their property at a price that’s too high.

“Some people ... demand more than their homes are worth, even though they have to sell against their will. This is particularly likely among sellers in high-end neighborhoods, who’ve often invested large sums to customize their properties,” Early says.

But eventually, people with financial issues must sober up and sell at a realistic price or see their properties taken away from them through foreclosure.

Have you fallen in love with a princely property that went on the market months ago with a bloated price tag? Are you confident the sellers must move soon and will eventually have to take a drastic price cut to get their place sold?

If so, Early urges you to prepare yourself to submit an immediate bid as soon as its owners face reality and take a major price cut. Make sure you have a preapproval letter from a reputable lender showing you have the income and good credit to go through with the deal.

“Sometimes, high-end sellers have to take a major discount. That’s the exact moment when you should pounce on that property. Jump in with both feet, and you could soon be the owner of the house of your dreams,” Early says.

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