How to sell Real Estate in a down cycle

1. Price to sell. If you really must sell now, don't mess around. List your house based on what the market dictates today, not the prices that friends, relatives and co-workers got last winter or last spring. And consider that some -- certainly not all -- real estate agents may suggest you hang on to a higher sale price in hopes they'll earn higher commissions. At the same time, be wary of agents who will urge you to set an excessively low price -- just so they can collect fees.

2. Consider all credible offers. Holding fast for a better offer might put you in a situation where you're merely playing catch-up with a moving market. Don't assume there'll always be another offer coming down the pike. You may need to come off your price 5 percent in some areas and 10 percent or more in others.

3. Offer to proffer. Buyers are requesting all kinds of enticements to spice the pot. Club memberships, prepaid lawn maintenance, moving-expense reimbursements, all appliances included and liberal repair credits are just a few possible throw-ins. Don't be shocked if you hear, "Throw in that plasma TV and we've got a deal." Consider in advance how far you'll be willing to go, but draw the line, however, at "first-born child."

4. Catch the wave at the source. Prepare your home for sale at the very earliest point this "spring" (actually early March or even late February), the time when seasonal buying interest is just starting to build.

5. Preserve your equity. Until the market stabilizes, refrain from borrowing from home equity (or raiding your 401(k), for that matter) to pay your bills, or for vacations and other purchases.

6. Gain in a sell-buy scenario. If you'll be buying another home at the same time you're selling your current one, the price reduction on the new one can compensate for the "loss" you're taking on the old one. If you plan a "move up" to a better neighborhood and are paying 10 percent below list after selling your old home for 10 percent below list, your net dollar savings will actually be more. .

7. Stay if possible. If you're happy in your home and are meeting your expenses but want to sell due to continuing "housing bubble" fears, sit a spell. A home is a shelter first, and investment second. Except for a handful of markets that are still hyperinflated, odds are that it will pay to ride out the storm. Generally, the early stages of a downturn are the scariest because that's when amateur investors are dumping "spec" properties cheaply.