Strategies for buyers and sellers in a changing market.

If it's April, it must be real estate season. And whether you're buying or selling, the news is good this spring. Not great, as it was for sellers in 1999, when there was little inventory and just about anything sold - and fast. Nor daunting for buyers, as when interest rates averaged 8% and higher last spring. But good.

"If you're buying, take heart in the fact that there are somewhat fewer buyers now than in the past year or two," says Keigh Gumbinger of HSH.com, the nations' largest publisher of mortgage rate information. "Rather than 10 people bidding on the one affordable home in your market, there might be two or three." At press time interest rates already had dropped to about 7% on a 30-year fixed-rate loan, and there was pressure to push them down further.

"For sellers, it's a very strong market now," counter Fred Flick of the National Association of Realtors. "Prices are going to increase about 5%, which puts sellers in a good position."

Clearly, though, a market good for buyers and sellers is one in which - no matter where in the transaction you fall - you need a strategy. So choose sides and read on.

Selling Smart

** Temper your expectations. The notion that there will be fewer buyers makes sense. After all, homeownership is at record levels, so some slowdown may be expected. And consumer confidence has fallen off. Sellers may need to adjust their expectations of what their properties are worth. That's not to say a house worth $200,000 six months ago now suddenly will sell for $150,000. But you may no longer get offers above your asking price.

** Price it right. Even in a market in which homes seem to move faster than shares of a hot IPO, price yours too high and it'll sit - and sit some more. If you sell through a broker, he or she should provide you with detailed information on how fast comparable properties in your neighborhood have sold and at what price, as well as a recommended asking price. If you're selling your home yourself, visit enough open houses to get a sense of property values, scour the local newspaper for recent sales.

** Get on the MLS, multiple listing service. If you decide to list your house, be sure to get on the multiple listing service. This service will provide you with the maximum amount of exposure which will net you the best and highest price for your property. Even if you decide to sell your house alone, try to negotiate a fee with a broker in order to get your home listed on the MLS.

Buying Smart

** Keep your head. It's no longer financially sound to get caught up in a property auction, says Doug Duncan of the Mortgage Bankers Association, which expects a flat-to-down economy in the first half of the year to weaken the housing market. "Don't enter a bidding war without analyzing what your financial capacity is. You need to understand this as much as your lender."

** Look early, look often. Work with an agent who can give you a heads-up on new properties, preferably before they come onto the market. Often, the agents who do the most listing have the best inside scoop. But be certain they are, contractually, representing you.

** Shop for your loan, too. According to a 2000 study by the MBA, 30% of homebuyers talked to only one lender. Big mistake. Gumbinger points out that rates within a single market can differ by a full percentage point - or more. On a $200,000 loan, the difference between a 7% and 8% mortgage is nearly $50,0000 over the life of the loan. So shop every source available: banks, credit unions, mortgage brokers and the Internet. And make them give you their best price to win your business!

** Think value not price. Key to making sure you're getting the house you think you are: an inspection by a member of the American Society of Home Inspectors. "They're particularly important for the first-time buyer who is walking into something he or she knows nothing about," says Bur Sienkiewicz of the National Association of Exclusive Buyers Agents, who notes that an inspection sometimes can be a negotiated part of the deal, with the seller picking up a portion of the cost.