The Wall Street Journal reports the 'new rules of real estate.' "As the spring selling season moves into high gear, the cooling housing market is upending the conventional wisdom that guided buyers and sellers during the housing boom. Some brokers are advising sellers to price their homes in the bottom 25% of comparable properties. People looking to enter the market for the first time are being told not to overly stretch their finances because rising home prices may no longer bail them out."

"Employees who are relocating are being advised to steer clear of new subdivisions where competition from brand new construction could make reselling soon difficult."

"Such strategies aren't entirely new, but they had fallen from favor in many markets as home sales heated up early in the decade. In New York City, where the housing market has begun to cool, some buyers are now getting condo developers to pay city transfer taxes and certain other expenses that can total 3% to 4% of the purchase price, says (appraiser) Jeffrey Jackson."

"Say goodbye to the days when sellers could simply look at what their neighbor's house sold for and then list theirs for 10% more. Brokers are advising sellers to make sure their house comes across as a good value relative to other homes on the market. 'Pricing is absolutely critical right now,' says Rosey Koberlein, (broker) in Tucson, Ariz., where sales are off 20% so far this year."

"David D'Ausilio, a broker-associate in Westport, Conn., is counseling his clients to price their homes in the 'bottom 25%' of comparable homes and to cut their asking price by 3% to 5% if the listing doesn't generate several showings or written offers within three weeks."

"Jill Green, a realtor in Carlsbad, Calif., a coastal community north of San Diego, has been making offers that are 1% to 5% below the low end of the seller's price range. 'Sellers are entertaining the offers and are taking them,' she says."

"Some brokers are advising first-time buyers to leave a financial cushion instead of stretching as much as possible and counting on rising home prices to bail them out. They are also asking sellers to help with closing costs. Elise Owen, a program manager for a nonprofit group in Washington, recently purchased a one-bedroom condo for $178,000. The seller threw in $5,000 toward closing costs. 'It allowed me to feel like I was on more secure ground by keeping some of my savings available' for emergencies, Ms. Owen says."

"In some parts of the country, such as California's Silicon Valley, cooling is most evident in the higher end of the market, good news for homeowners looking to trade up. 'For an extra half-million dollars, you can get quite a bit more for your money than you did before,' says (broker) Richard Calhoun in San Jose."

"Employers are looking for ways to ensure that homes don't languish on the market when an employee relocates. The number of company-ordered appraisals is growing as employers seek to get the price right before a house goes on the market, says H. Cris Collie, executive VP of an association that relocate employees."

"Going forward, Mr. Collie expects employers to more aggressively enforce policies that require transferees to price their homes close to the appraised value. He is also seeing renewed interest in 'loss on sale' programs, which compensate people who are relocating for losses if they sell below the purchase price. Some relocation experts also advise transferees to shy away from buying a home in a brand-new development. 'If you're buying in a new subdivision...you're competing with new construction' when you sell, notes Pam O'Connor."

"In some new Tampa Bay, Fla. subdivisions, dozens of similar investor-owned homes are competing for buyers, says (broker) Craig Beggins. 'If you have any way not to sell right now, don't,' Mr. Beggins tells investors. 'If the neighborhood is brand new and no one is living there, my advice is to rent it if they can.' But the decision to sell or rent can be tricky, particularly if the rental income isn't enough to cover the mortgage and other carrying costs. Rental homes typically don't show well, says Bob Hamrick, broker in Las Vegas, and often must be vacated and given a fresh coat of paint and new carpet before they are put back on the market."