It never pays to get caught up in group hysteria, especially when it comes to real estate. Conditions vary from town to town, and no national statistics can give you a clear picture of what's happening in your neighborhood. So don't let headlines spook you into making a costly mistake. Even simple steps can make a big difference in the price you buy or sell for. Read on for some advice that will help you make sure you're getting the best possible deal.

If you're a seller ...

 

The worst mistake a seller can make in a softening market is to overprice a home. Even putting a high price on your home to "test the market" for a few weeks (with the notion that you can always lower it later) is a bad idea.

Your goal should be to seal a deal during "the first two or three weeks your house is new to the market," says Lyle Martin, co-founder of Assist-2-Sell, a discount realty firm. That's when your home generates interest from serious buyers who have their radar up for fresh properties. If you're asking too much, they'll move on, and your house will get lumped in with the rest of the inventory. And if it lingers too long, "it can become stigmatized," says Pam O'Connor, CEO of Leading Real Estate Companies of the World. "Buyers will think there is something wrong with it."

How can you be certain that you're pricing it right? Start by checking out your rivals: similar homes for sale in your neighborhood. But the numbers that you really want are the actual prices comparable homes have sold for recently--a market analysis that any good real estate broker will prepare. And don't cling to memories of what houses were commanding six months ago; if your area has seen a slowdown in sales, you're not going to get top dollar. "The silver lining," says Gil Campos, a 25-year Boston real estate veteran, "is that houses priced correctly are selling for what they're asking."

 

In a faltering market you need to stand out. That's where something called staging comes in--that is, sprucing up your home in a way that encourages prospective buyers to envision themselves living there. The first step is to rent a storage locker and fill it with all that clutter from the attic, basement, and garage.

Also remove any furniture that makes your home look overcrowded. And you may want to sweep your house clean of such personal items as wedding photos, framed diplomas, or children's fingerpaintings--it's difficult for prospective buyers to see your home as their castle if your family's signature is all over it. Tone down unique decor. That nude oil painting hanging in the foyer may turn off buyers. Rooms painted in unusual colors should be redone in neutral tones. "You're not selling your things, you're selling the space," says Barb Schwarz, CEO of StagedHomes.com.

Curb appeal is equally important. Says Long Island, N.Y., agent Diane Saatchi of the Corcoran Group: "The trip from the driveway to the front door can kill a deal." So slap a fresh coat of paint on the door, hang a wreath, hide the garbage cans, and plant flowers along the walkway.