Last Updated Apr 26, 2011 9:27 PM EDT

Buying or selling a home this year? Get ready for a rough ride.

Economists and housing industry observers are saying the housing market has continued to falter in many parts of the U.S. As unemployment remains stubbornly high (10 cities in California have an official unemployment rate of 15 percent or higher). and millions of homeowners remain underwater, interest in buying homes has plummeted.

I was on Fox Chicago News yesterday morning to discuss the real estate market. The anchors asked me for three tips for buyers and three tips for sellers. Here’s what I came up with:

3 Essential Home Buyer Tips:

3 Essential Home Seller Tips:

1. Count the foreclosures in your building, on your block, and in your neighborhood. If you want to sell your home, the first thing you need to know these days is how many foreclosures (and short sales) you’re competing against. If there are 20 foreclosures on your block, or if 15 people out of 100 are no longer paying their monthly assessment because they’re doing a strategic default on their property, you’re in real trouble — but it’s far better to know that before you list the property than after.
2. Be realistic about price. Even if you’re not competing against a handful of foreclosures and short sales, buyers aren’t willing to pony up cash the way they did back in 2005 and 2006. Being realistic about the price point means consider exactly what has sold in the past 90 days, and for how much. Then, price your property at, or just below, that range. If you want what passes for top dollar these days, you’ll have to get your home into top selling shape. And, don’t forget to stage it.
3. Counter every offer. Some things are selling. The problem is, you’ll never know when a home buyer is serious, because the initial bid could be super-low. It’s not an insult — the home buyer could just be testing you. That’s why it’s vital that you counter every offer, even the ones that seem way low — if the buyer wants your property, he or she will come up to a reasonable price for the neighborhood. It just might not be the price you’re hoping to get.

Read More:

• What Does Main Street Know That Wall Street Doesn’t?
• New Home Sales Fall 16.7 Percent From 2009
• Real Estate Crisis Continues — Non-Residential Construction To Fall 20% by End of 2010
• Jobs, Small Businesses, Payrolls, and the Economy
• Loan Modification Hell: Join The Club
• Loan Modification Success Story — Filing a Complaint With the OCC Can Help
• Loan Modification Hell: New Solutions To Avoid Losing Your Home