Buyers: Be credit-ready.

There’s a lot of competition out there for homes, so tarry not. Get your  credit report and start repairing any blips. If your scores are below 620 or so,  a conventional loan will be a challenge. But if they’re under 740, you still  might not get the best rates. Many buyers get a prequalification letter from the  lender, but you can one-up them with a preapproval, which comes after a more  thorough evaluation of your finances. A preapproval letter shows the seller that  you’re good to go and can close quickly.

Buyers: Adjust your negotiating expectations.

Lowball offers are off the table in this environment and could eliminate you  from consideration. Respond to counteroffers quickly to keep other buyers from  entering the picture; you don’t want to encourage a bidding war. If one breaks  out, be prepared to get fewer concessions and pay more money. And have a few  other homes in mind so you can be willing to walk away if the price soars.

Buyers: Find life after foreclosure.

Have a foreclosure in recent years? Join the crowd. Though you might think  you have to wait seven years to get another conventional mortgage, Fannie Mae,  Freddie Mac and the FHA say they actually require just a three-year waiting  period if the foreclosure was caused by extenuating circumstances. There are  plenty of nonconforming lenders — often called “shadow bankers” — out there if  you can endure a big down payment (around 20 percent) and above-market interest  rates. Or consider a lease-purchase or lease-option where you pay the homeowner  a monthly premium above your rent for the right to buy at a set price later.

Buyers: Ask and you won’t receive  (an unpleasant surprise).

You’d be dismayed at the things sellers aren’t obliged to disclose in most  states, including on-premises felonies, suicide, murder or a neighboring sex  offender. Don’t be afraid to thoroughly question the selling party in writing before signing the contract. Some questions: Is there a  cell tower, water tower, natural gas well, oil well or other non-residential  construction scheduled to be built in this neighborhood (then define  “neighborhood”)? Is there commercial zoning on nearby vacant land? Is the yard  prone to flooding? Are train whistles or other regular loud noises audible  there? Did known criminal activity occur in the house? Have there been reported  hauntings? Are there loud neighbors, dogs or other noise pollution? Are there  registered sex offenders or other known criminals living nearby? If the selling  party refuses to answer any of these questions, that’s a bright red flag.

Sellers and buyers: Heed changing trends.

Pay attention to trends and react accordingly. Thinking of laying carpet?  Agent surveys in the past few years show homes with hardwood floors or faux wood  laminate floors are far faster sells. You still want to be in suburbia?  Millennials don’t. Numerous cities — such as Austin, Texas; Portland, Oregon;  and Minneapolis — have watched this more environmentally conscious generation  flock to “mixed-use” urban districts served by trendy cafes, nightclubs, bike  paths, civic events and mass transit. For now, they’re not buying condos, which  haven’t recovered like the single-family market. They’re renting — but watching  the condo market ever so carefully.