An IT specialist and his homemaker wife both turned 40 this year. The milestone birthday came with one major regret: After three years of trying, they still haven’t reached their goal of homeownership in their native Minneapolis.

“It’s just one darn impediment after another. We stockpiled down payment funds -- but not enough to beat other buyers during the bidding wars of the pandemic. Now we’re facing even more trouble with high mortgage rates,” the IT specialist says.

Should this couple succumb to the economic forces affecting them and just resign themselves to renting for the indefinite future? Or should they plow ahead in hopes of finding a fairly priced property within their spending limits? Homebuyer advocates urge the latter course.

“Of course, higher mortgage rates cut into buying power. But what buyers forget is that rates always fluctuate. This means it’s extremely likely that down the road they could refinance their mortgage to a lower rate,” says Michael Crowley, a longtime real estate broker and past president of the National Association of Exclusive Buyer Agents (naeba.org)

When it comes to shaping an offer for a property you like, Crowley cautions against letting your emotions get the best of you, even if you’re enamored with the place and are competing with rival bidders.

“You can’t always count on appreciation to bail you out if you have to sell and move unexpectedly in two or three years. Remember, too, there are high transaction costs involved in selling one house and buying another,” he says.

Crowley recommends that buyers who could be tempted to overpay set a ceiling on how high they’ll go and stick to that limit.

“Base your highest potential bid on both recent sales in the same neighborhood and what you can afford. Then put that top number on an index card and carry it in your pocket when you go to your agent’s office to write up any offer or counteroffer,” he says.

Here are a few more pointers for buyers:

-- Think ahead before limiting yourself to a single neighborhood.

Too many buyers let emotion dominate their decision making on where to live, says Michael Knight, a fee-only financial planner in the Chicago area.

“Have an informal talk with a few knowledgeable real estate agents in any area you’re considering. Ask them lots of hard questions before making your choice of the best possible community,” he says.

Which neighborhoods are most likely to hold or gain value in the future? Knight says top-quality public schools are critical, particularly now that private schools are out of reach financially for more families.

Access to walkable retail stores and quality transit are also high on the list.

“People are really looking for good public transportation. You’ll buy a more marketable home if it’s close to popular light rail or bus lines,” Knight says.

When talking to real estate agents, ask them to show you the neighborhood’s amenities on a map. Also, ask them to assemble data for you on sales trends in the community -- including the median time it takes to sell a home there.

-- Seek out sellers who are highly motivated to move.

It’s no secret that homeowners in many neighborhoods still have the upper hand if they’re attempting to sell a reasonably priced property in a desirable area. Very few owners are now attempting to sell in order to avert foreclosure. But it’s still possible to find some who are eager to move.

As a would-be buyer, you may feel uncomfortable about seeking out owners who must sell quickly due to the loss of a job or mortgage payments that are too high for their income. But Crowley says you needn’t feel guilty about doing so.

“You could actually be doing the sellers a favor in such a case. Even if you buy at a discount off the current market value, the owners will likely do better selling to you than they would if the bank took away the house and ruined their credit in the process,” he says.

How can you identify highly motivated sellers before the foreclosure process begins? Obviously, your agent can often find them through the Multiple Listing Service. Another approach is to walk around the neighborhood on a weekend, striking up informal conversations with residents there.

“On a Saturday or Sunday, you will likely encounter residents who are out walking their dogs or taking their kids to the park. If you’re friendly and express your admiration for their area, they’ll likely chat openly with you and tell you neighbors they know who intend to move soon and the reasons why,” Crowley says.

-- Do your research on local property values.

Once you’ve chosen a neighborhood where property values are solid and have found your dream home there, you’ll want to carefully assess its true current value before formulating a bid.

To help develop a realistic estimate of the worth of the home you wish to buy, ask your agent to provide you with statistics on properties that have sold in recent weeks -- the fresher the data, the better. Make sure this analysis takes into account any likely “distress sales” that have occurred lately, which often come at a sacrificial price for the sellers.

“Even if we face a recession, it’s unlikely that prices will plummet in coming years. Still, it’s a very good idea to resist overpaying, even if you love the house. Should you have to walk away from one house you like, I guarantee you’ll find another one that’s an equal or better choice,” Crowley says.

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

If you’re a potential home seller in an inventory-tight market, rest assured there are countless buyers awaiting your listing. But that doesn’t mean you‘ll command your home’s full value if you try to sell “as is.”

“Buyers aren’t stupid. They know that a house in poor repair -- with all sorts of cosmetic issues -- can cost them a bundle to upgrade. In fact, they’ll likely overestimate the cost of all those fixes,” says Sid Davis, a veteran real estate broker.

It’s rare for sellers to need major home improvements just to get a house sold. Yet many properties need painting and minimal repairs, like replacing worn kitchen countertops or broken light fixtures, says Davis, author of “A Survival Guide to Selling a Home.”

Choosing the right contractors will be vital to your sale.

“Regrettably, hiring bad contractors can be treacherous. Your whole budget and timeline can be severely compromised by a crummy contractor,” Davis says.

Julie Khuu, who owns an interior design firm in Southern California, says the hunt for reputable contractors should start with personal referrals from friends, neighbors or family members.

“Personal referrals are much better than online referrals,” according to Khuu, who urges homeowners to meet in person with contractors before hiring them.

“Make sure you connect with your contractor and vibe well. You want someone easy to talk to,” she says.

Joan McLellan Tayler, a longtime realty company owner, cautions home sellers against contractors who push you into personalized or overly expensive improvements.

“In the kitchen, all you want is clean and clear, with standard appliances in good condition. You don’t need marble countertops or cabinet handles that are art pieces,” Tayler says.

Before signing a contract with any contractors, make sure the firms you select are insured, bonded and licensed in your state. Also, make sure their deadlines are in writing.

“When you’re a home seller, having a late contractor is a real problem,” Tayler says.

Here are a few pointers for sellers:

-- Pose many questions before choosing a contractor.

A face-to-face meeting is an important element in the process of screening contractors.

“By meeting the contractor at your house, you can identify sloppy or disorganized companies before it’s too late,” Davis says.

To make sure your project won’t get squeezed out of a contractor’s schedule by a larger job, he says you should always ask whether the company is overbooked. You also need to know who will perform the work.

“There’s nothing wrong with an estimator coming out to give you a proposal that covers price and terms. But you still need to determine who will do the actual work and whether they’re licensed for their trade,” Davis says.

-- Make sure your contractors meet local government requirements.

Davis says not all home repairs or upgrades require government permits to ensure that the work complies with local codes. For example, your electrician likely won’t need a permit to change a light fixture, and your plumber won’t need one to fix a leaky faucet.

But in many areas, larger-scale projects do require government oversight.

Maybe you think you’ll get a lower price from a contractor who circumvents the need for government permits and inspections. But as Davis says, hiring a firm that skirts the law can be risky, especially if you’re planning to sell.

“It could come back to haunt you if your contractor turns a blind eye to regulations. That’s because the home inspector hired by your buyer could blow the whistle on the contractor and ruin your chance for the sale,” Davis says.

-- Get the contractor’s promises in writing.

Davis says you should never count on verbal guarantees, even from a contractor you’ve previously hired. As he says, there’s no substitute for a written contract that provides details on all aspects of the job, including price, timing and scope.

-- Ensure that deadlines are included in the contractors’ proposal.

Those planning to put a home up for sale in the near term can’t afford delays in necessary home improvement or repair work. That’s why Davis says it’s very important to have deadlines built into any agreement you sign.

“There should be real penalties should the contractor fail to perform on time,” Davis says.

You should also make sure the agreement guarantees that the contracting company carries insurance and that all its employees and subcontractors are covered.

“Good contractors have insurance and are happy to show you proof. Insurance is terribly important in the event that any worker at your home falls from a ladder or has another injury,” Davis says.

-- Never pay for the entire project at the outset.

In some cases, it can be perfectly legitimate for a contractor to ask for a partial payment at the front end -- especially if substantial material costs are involved.

On a roofing job, for example, you might be asked for a down payment to help pay for the cost of shingles. And a painter might request that you pay in advance for paint and rollers.

But Tom Philbin, author of “How to Hire a Home Improvement Contractor Without Getting Chiseled,” warns against paying for the full cost of any job -- including all the labor -- before it’s complete. As he says, if you advance the whole cost at the outset, you’ll lose all the clout you’ll need should the contractor default.

“Good contractors have good credit lines. So you should never pay more than 10% to 15% upfront. Remember that if you lose control of the money, you lose control of the job,” he says.

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

Tenacious homebuyers have reason for optimism, so long as they’re patient. That’s according to Robert Reffkin, the CEO of Compass, one of the nation’s largest real estate brokerages.

Reffkin allows that the country is suffering a severe shortage of available listings. He estimates that fully a third of current homeowners are hanging onto mortgages locked in at around 3%.

“They view those mortgages as a financial asset” at a time when prevailing rates are pushing up against the 7% mark. That’s why they’re not willing to move now, he says.

But he projects that as soon as mortgage rates fall back into the 5% range -- as financial analysts expect -- that could unleash a surge of new listings that will intensify sales.

“This will bring a ... buying craze all over again,” Reffkin predicts.

Who’s hankering to list their home as soon as the timing is right?

Stacy Berman, a longtime real estate agent in the Washington, D.C., region, says many seniors who’ve owned their property for decades would soon be ready to sell once mortgage rates moderate.

“It’s not uncommon for seniors who are moving to a different part of the country to take out a new mortgage for their next purchase. So it’s logical many are rate-sensitive,” Berman says.

But so far, retirees in the baby boomer age cohort, born between 1946 and 1964, have been reluctant to list their properties, a primary reason why available listings are currently scarce.

“I’m practically begging potential sellers to list, especially those in the more affordable price point, because those are the homes buyers are hungry for,” says Shauna Pendleton, an Idaho agent who specializes in first-time buyers.

Who is feeling an urgent need to get on the property ladder? Most eager are young people in their 20s and 30s, along with adults of all ages facing job changes or military reassignments.

“What’s more, there are numerous recent college and grad school graduates who are anxious to buy their first home,” Berman says.

Besides the expectation that home listings will become more plentiful, financial analysts anticipate that listing prices will soon moderate, even in areas where multiple offers are now common.

“The velocity of price increases will certainly diminish significantly,” says Melissa Cohn, a vice president for William Raveis Mortgage, a Connecticut-based lender.

Here are a few pointers for determined buyers:

-- Inform yourself about local property values.

Eve Alexander, a longtime real estate broker who works solely with buyers, says buyers 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 varying 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.

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.

“You won’t want to push the limits if you’ve fallen in love with the property and feel it’s a do-or-die situation,” she says.

On the other hand, you might choose to make a lower offer if there are other available homes in the area that would meet your needs equally well.

-- Ignore 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.

“It’s a given that some supposed sellers aren’t really motivated to make a fair deal,” he says.

How can you tell which sellers are merely testing the market and will never negotiate seriously with anyone who bids less than their lofty list price?

Tyson recommends you ask your agent to find out if previous offers have come in on the property you want. 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.

-- Seek information 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.

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