For more than three years, a couple of married millennials have dreamed of buying a country property with lots of land.

After missing out on several properties, they thought they’d found the perfect place last week. It was a well-priced farmhouse on 2.5 acres in an exurban suburb.

“We love the peace and quiet of country living. Our happy fantasies involve growing beautiful gardens and raising puppies on land we own,” says the wife, an MRI tech at a local hospital.

But once again, the couple lost out on a property of their choice. Other bidders came in higher than what they offered, which was already $50,000 over the list price.

“This time, our spirits really sank because we thought our over-list bid really did the trick,” the wife says.

Michael Crowley, a real estate broker who’s been in business since 1992, doesn’t know the couple in this true story. But he worries that their heartfelt desire to buy a country home could eventually cause them to bid an excessive amount well above market value.

“At a time when a housing shortage is causing a lot of people to offer ridiculous sums just to compete for a home in a desirable area, buyers have to be super careful not to go too high,” Crowley says.

As economists explain, the root of the problem for many homebuyers, including trade-up purchasers, is a serious shortage of available properties.

“Many homeowners are still opting not to sell and give up historically low mortgage rates. But those who do have been rewarded with bidding wars as buyers compete for limited options,” says Jeff Tucker, a senior economist for Zillow, the national real estate company.

He says a shortage of new listings has dogged the housing market for almost a year, adding that the market is short at least 320,000 properties for middle-income buyers.

Here are a few pointers for buyers who want to compete without bidding too high:

-- Choose your target neighborhood wisely.

Too many buyers let emotion dominate their decision on where to live, says Michael Knight, a financial adviser in the Chicago area.

“Many people pick a neighborhood too quickly,” according to Knight, who recommends you compare several areas before making your pick.

“You’ve got to do plenty of research. 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? He says those with well-regarded public and private schools are your best bet. Light rail access is also a hot ticket.

“People are really looking for good public transportation,” Knight says.

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

“Information is the key to making a solid long-term decision,” Knight says.

-- Hunt for sellers who are motivated to move.

As a would-be buyer, you may feel uncomfortable about seeking out owners who are under pressure to move because of a health reversal or lost job. But Crowley says you needn’t feel guilty about doing so.

“If the owners have to quickly liquidate their asset to pay whatever big bills they have coming due, they’ll be better off selling sooner rather than later,” he says.

How can you identify highly motivated sellers? Obviously, your agent can often find them through the Multiple Listing Service. An additional 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 which neighbors intend to move soon and the reasons why,” Crowley says.

-- Analyze property values in the area you wish to live.

Once you’ve chosen a locale where property values are solid and you find an ideal listing there, you’ll want to carefully assess its true current value before formulating a bid.

“With uncertainty about the U.S. economy in the future, it’s vitally important you obtain a true opinion of value to make sure you don’t go way, way over market value -- a move you could come to regret,” Crowley says.

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.

As Crowley says, buyers who make an extreme offer on the high side are at risk of buyer’s remorse in future years.

“Remember that going way over the top on your bid now could mean winning the battle but losing the war,” he says.

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

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.)