Rising mortgage rates, a surge in inventory and slower home sales in some areas are changing the ways in which buyers and sellers approach the housing market. Real estate agents are placing a great deal of emphasis on pricing, as buyers who use the Web to conduct home searches steer clear of properties that appear to be overpriced.

Westport, Conn.-based agent David D'Ausilio of RE/MAX Heritage encourages sellers to price their homes in the bottom 25 percent of comparable dwellings and shave anywhere from 3 percent to 5 percent off the asking price after three weeks of tepid interest. Sellers also are urged to undertake repairs to attract buyers at a time when they have plenty of homes to choose from and plenty of time to make purchase decisions.

Meanwhile, first-time buyers are encouraged to stay within their budgets because slower home-price appreciation means that there will not be a great deal of equity to bail them out in the event of a financial crisis.

Move-up buyers, by the same token, are being told to avoid offers that are contingent on the sale of their current residence if they want to secure a better price; and investors who do not want to aggressively compete with other new units for sale are being advised to rent or turn to stagers to make their properties more attractive.

The housing slowdown also impacts relocaters, as a growing number of employers require that homes be priced close to the appraised value to achieve a quick sale. Additionally, many companies are instituting "loss on sale" programs to compensate workers who get less than their asking prices.