Few would have believed it just a few short years ago, but the housing recovery has come far enough that in an increasing number of popular neighborhoods, buyers must now compete with rival bidders.

Are you a buyer seeking a home in a high-demand market? If so, real estate specialists say that you could be at risk of overpaying.

"Overpaying can be a real danger -- especially if you're one of these idiots who gets revved up when facing competition and wants to win no matter what," says Sid Davis, a real estate broker and author of "A Survival Guide for Buying a Home."

Of course, the risk of overpaying is that you won't recoup your investment when you move. That's especially likely if you have a career that requires you to move often.

"I'm not so concerned about people overpaying if they really expect to stay in the house for 10 or 15 years. But if you're not sure how long you'll stay, you've got to be cautious," says Leo Berard, charter president of the National Association of Exclusive Buyer Agents (www.naeba.org).

Do you plan to bid on a particular property that's for sale in a highly desirable neighborhood? Yet do you fear overpaying? If so, then even some basic research on local property values could help put your mind at ease.

Berard says astute buyers narrow their search for information to the exact area where they intend to buy. Data gathered on state or national real estate trends will have little relevance for you as you seek to learn more about values in your target area.

In fact, homes could be worth more in one section of a neighborhood than another, due simply to differences in housing styles.

A strong knowledge of local property values helps you craft an offer at the right price point, thereby reducing your chances of overpaying.

Here are a few tips for buyers intent on getting a fair deal:

-- Seek Internet information as a starting point.

Many websites now offer fast and free estimates on property values and can prove a valuable resource, Berard says. One example he cites is Zillow.com, which lets you search data at either the property or neighborhood level.

"To get started with your research on home values, these sites are a good starting point," he says.

However, statistics from websites are no substitute for guidance from a capable real estate agent with extensive knowledge of the area where you're looking. The right agent may even be able to recite recent sales figures from memory. But Internet information can be a good complement.

"Spend an hour or two one morning on the right websites and you can move up the learning curve while still in your pajamas," Berard says.

-- Ask your real estate agent for help evaluating any home you're considering.

The classic technique used by real estate professionals to estimate a home's value is called a "Comparative Market Analysis." This method is grounded in data on recent sales of similar homes to the one being judged.

"If you're looking in a community with lots of houses that have uniform floor plans, the process is pretty straightforward. But that's not the case where lots of houses are custom-built," Berard says.

In any case, your agent should find at least three completed sales that are roughly comparable. Then she or he should add and subtract value based on differences between the home you like and the others.

Real estate agents are the first to admit that their judgments on property values are based on more than data.

"Unfortunately, coming up with an opinion of value is never totally scientific. Your agent also has to draw on experience," Berard says.

-- Take neighborhood economic trends into account.

During a period when real estate markets are relatively volatile, as they are now, Berard says you need to look beyond closed deals to see where values are heading.

"Housing prices don't rise or fall as quickly as stocks on Wall Street. But over time, economic factors can have a big impact," he says.

In a suburb that's heavily reliant on one employer, such as a defense contractor, a wave of layoffs by the company could reduce property values nearby. On the other hand, values could rise in a community that's benefited from a school boundary change.

-- Request seller "concessions" rather than a lower price.

As a real estate broker, Davis recently helped a middle-aged woman buy a place for her elderly mother. It was an accessible, ranch-style home in a popular neighborhood where a number of properties were on the market at the time.

The statistics gathered by Davis for his client indicated that the two-bedroom condo was fairly priced. They also showed a high level of inventory in the area, which strengthened the purchaser's bargaining power.

Even so, Davis advised the buyer to offer full price for the place, while at the same time seeking a sizeable amount of seller assistance with her closing costs. The sellers readily accepted the deal and the elderly woman was soon able to move in.

Often sellers are much more willing to yield on closing costs than on the price, Davis says. This helps protect their pride.

"It's a cliche in real estate that people like to crow about how much they 'got' for their house. But when they boast, they never mention how many concessions they made," he says.

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

As the economy heals, more people who've lost a job are finding new work, albeit often in a distant location. But moving for work often means selling a beloved home, and that transition can be painful, says Ronald Phipps, a veteran real estate broker.

To delay the need to sell, some homeowners postpone, believing their property will gain value as time passes. This strategy usually depends on converting the property to a rental unit for an interim period.

But Phipps says that overseeing a rental from a distance rarely works well -- even for owners who hire a rental management company.

"When you rent, there are always complications. Tenants never treat a house with the same care as the owners. In addition, there are always carrying costs involved with renting out a property," he says.

Instead of focusing on the possibility of renting, Phipps urges homeowners planning an out-of-state move to be pragmatic and do all they can to seek a speedy sale.

Phipps says home sellers, especially those who must move quickly, are best served by pricing accurately from the outset rather than trying to "test the market" on the assumption they could take price cuts later if necessary.

"Your highest impact comes at the beginning of your listing. That's when you're most likely to get fair market value -- not after people start to question why your house has been sitting unsold for so long," Phipps says.

Here are a few tips for homeowners seeking a quick turnaround sale in advance of a distant job move:

-- Don't ignore cosmetic upgrades, even if you're short on money.

"Here's the problem: few people have extra cash for fix-ups. But try to sell your house with a ratty carpet or an ugly interior paint color and you'll lose more than it would cost to fix those defects," Phipps says. This is because buyers often demand steep discounts as homes that appear in need of fixing up.

Suppose, for example, that three of your bedrooms have faded and off-color walls. Perhaps you'd pay a total of $1,500 to have these rooms repainted. But, as Phipps explains, a buyer might try to get a $5,000 or greater discount if you let the work go undone.

Are your savings depleted due to recent unemployment or other economic hardship? If so, Phipps says you're better off borrowing for basic cosmetic improvements than going on the market in "as is" shape.

If at all possible, Phipps urges home sellers in a financial pinch to avoid borrowing on their credit cards for pre-sale upgrades -- friends or family would be safer options, if possible.

-- Do the work needed to make your place clean and clear.

Not all home fix-ups cost money. Indeed, two powerful tools for home improvement are virtually free: cleaning and de-cluttering.

"People are used to thinking that 'sweat equity' is for homebuyers. But it's also for home sellers. The only costs necessary for cleaning and clearing are for basic supplies and your elbow grease," says Ashley Richardson, a long-time real estate agent affiliated with the Council of Residential Specialists (www.crs.com).

During the purging process, she strongly encourages sellers to remove family photos and other personal mementos.

"Personal items like photos of your grandparents only serve to distract buyers. Buyers don't want to see your relatives staring out at them from photos. These pictures make it hard for buyers to envision themselves living in your house," Richardson says.

-- Concentrate on your exterior image.

From their agents, buyers often receive listings of property they might wish to visit. But before booking an appointment, many buyers preview homes by computer.

"Nowadays, buyers' first impressions are often virtual. That's because they're using Google Earth to preview homes. In addition, they also drive by a place to check it out before committing to a showing," Phipps says.

He says that just as people judge books by their covers, so do they judge houses by their exterior appearance. Among the outside elements that could dissuade buyers from looking inside are peeling paint, unruly shrubs and clunker cars.

-- Schedule an event that gives you a concrete deadline.

If you're like many people, you need a rock-solid deadline to bring a project to its conclusion in a timely way. You fear procrastination could derail you from meeting your goal of preparing your home for sale quickly.

Assuming that's the case, Phipps encourages you to give yourself a hard deadline by scheduling a "broker's open house" on the day your home goes on the Multiple Listing Service.

A "broker's open," as it's known, is an event to which real estate agents throughout your area are invited. It's an effective tool for marketing an attractive property to those most likely to be working with serious buyers.

"Having a deadline is always a good motivator. You don't want procrastination to cost you valuable time that your house could be on the market," Phipps says.

-- Don't give up without trying.

By this point in the nation's recovery process, everyone has heard tales of homeowners who found it extremely tough to sell, no matter how hard they tried.

But as Phipps says, for every neighborhood where homes aren't selling, there are other markets gaining momentum --as both first-time buyers and move-up purchasers emerge to take advantage of very low interest rates and moderate home prices.

He cautions sellers, especially those who must move to take an out-of-state job, against concentrating on the tales of woe they've heard from people who had a hard time in the recent past.

"These other sellers might have hurt themselves by overpricing. Anyway, the housing market is improving in many areas. Rather than listening to unhappy sellers, I recommend you go out and get yourself some great strategic advice from true real estate experts," Phipps says.

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

A housing recovery is underway. Given that home prices are reasonable and mortgage rates favorable, real estate experts say it's a positive time to make a purchase. Yet many young singles and couples who seek homeownership still face major obstacles.

"Compared with the frothy days of the boom market before the recession hit, it's a heck of a lot harder to buy your first home," says Eric Tyson, a personal finance expert and author of "Mind Over Money: Your Path to Wealth and Happiness."

Tyson says many debt-heavy young buyers need a debt reduction and savings program that could take up to a year or two to complete before they're in a position to meet the expense of purchasing a home.

Are you willing to reduce your spending and cut debt to buy a first home? And are the sacrifices worth it?

Tyson contends that those who have steady employment and are certain to stay in the same area for at least five years are usually better off buying than renting.

"If you get a fixed-rate mortgage and buy in a neighborhood with rising prices, you should do better as an owner than a renter. That's because you'll have better control over your living costs and won't face the uncertainty of rising rents," Tyson says.

Here are a few pointers for young people who aspire to homeownership:

-- Carefully review your current financial picture.

One obvious obstacle to saving for a house is out-of-control spending, says Leo Berard, charter president of the National Association of Exclusive Buyer Agents (www.naeba.org).

Before you can realign your budget, it's wise to analyze where your money has gone, category by category, for the period spanning the last three to six months. This can be done with paper and pencil, with such personal finance software as Quicken or through such free websites as mint.com, a favorite of many young savers.

"Until you get a picture of your spending, it's very tough to see where cuts can be made," Berard says.

Granted, it's time-consuming. You'll need to sift through all your checking account and credit card statements. But, the information that such a breakdown yields will be worth it.

-- Develop a spending plan that prunes low-priority outlays.

Once you know where your money is going, it's time to create a spending plan that meets all your basic and top- priority needs while still letting you save for a home.

Tyson encourages you to scrutinize every category of your spending in search of possible reductions.

"Some areas -- like car expenses and restaurant bills -- probably contain a lot more fat than others. But there should be no sacred cows. Everything is on the table," he says.

For example, Tyson urges renters to reject the notion that their current housing situation is a given. Much money could be saved by modestly downsizing, Tyson says.

Likewise, are you willing to change your transportation spending? Perhaps you could dispense with a car and take public transportation to work. Meanwhile, you could find savings by cutting your energy use -- especially air conditioning -- and by letting go of a gym membership you don't use.

Financial planners are quick to cite food costs as an area where substantial savings are possible. Many people are surprised to realize how much they're spending to eat out at lunch with co-workers.

"Unless your office culture demands you go to restaurants with your colleagues, you might want to pack lunches for work, a very strong money-saving habit," Tyson says.

-- Strive to reduce your credit card debt.

In addition to student loans, many people in their 20s and 30s continue to accumulate substantial credit card debt. They use their cards for clothing, entertainment and vacations. And the unfortunate reality is that many young adults have cards with double-digit interest rates.

"If you're serious about homeownership but are living on plastic, you're going to need to make very big behavioral changes," Tyson says.

Cutting credit card balances requires strong self-discipline. But it's an essential prerequisite to homeownership for many. The odds are you won't need a financial planner to help. But Tyson says a good book on the subject could be invaluable. He recommends the newly updated version of "Deal With Your Debt: Free Yourself from What You Owe," by Liz Weston.

-- Don't let your friends weaken your resolve.

Sunnier forecasts for housing have many convinced that now is a good time to buy. But skeptics always abound --including many young people who've seen relatives or friends lose homes to foreclosure. Doubters also point to continuing economic uncertainty as reasons to postpone home-buying plans.

But if you're among those young adults who believe that saving to buy a home in the near future is in your economic interest, Tyson cautions you against letting anyone dissuade you from your goal.

"Their pressure could be implicit rather than explicit. For example, your friends might tell you that by cutting your entertainment spending and vacations, you're sacrificing too much of your lifestyle," he says.

Tyson believes those who let friends talk them out of saving for a home purchase in the next several years could come to regret it.

"If you have the courage to buy soon and choose a place in a solid neighborhood, within three to five years you should see tangible benefits -- including a modest level of appreciation," he says.

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