With bank failures and bailouts topping each day's headlines, it's hard for most buyers and sellers not to get discouraged. But for many, the show must go on, due to job relocation, divorce, space or school needs.

MSN Real Estate asked mortgage and real-estate experts for their advice to buyers and sellers caught in the market's downward spiral. Here are their top five tips for those navigating the mortgage crisis.

It will come as no surprise to most sellers that buyers have the upper hand in today's market, with its large supply of houses. But there are things that sellers can do to make the process less painful.

1. Wait, if you can

In very troubled markets such as Las Vegas, Phoenix, South Florida and Southern California, you're better off waiting to sell — if you can manage it. With half the homes for sale in the Southern California market identified as bank repossessions, it would be harder for buyers in this area, for example, to fetch a great price for their home.

With rents strong, it makes more sense for some homeowners to rent out their home, rather than sell and take a loss. Be aware that renting out your home could increase your home insurance. Also, you would have to report the rental income on your taxes, though you’d be able to deduct things such as including mortgage insurance, homeowners association fees, maintenance, etc.

However, if you are moving up to a larger home, agents say, and have lived in your current house for at least five years, you might be better off acting now. The reason? You can score a bargain on the more-expensive house you're moving to at the same time rates for conforming loans are relatively low. "You are going to give someone worse treatment on the other end," says Lee Tessier, a Baltimore Re/Max agent.

2. Get your home in great shape, but at minimal cost

With so many houses on the market, curb appeal is more important than ever, Fernandez says. You need buyers to be impressed so they'll want to come inside for a look. And having your house in pristine shape definitely sets it apart from a lot of the trashed foreclosures on the market.

However, spending a lot of money to whip your home into shape isn't recommended in the current low-ball market. So, focus your efforts on small projects that make your house seem fresh and less of a fixer.

3. Price it right

Be realistic and you will be rewarded. In many markets, homes priced just under market value are getting multiple offers, agents say, while their higher-priced competitors are getting low-balled.

Fernandez recommends sellers get an appraisal of their property done before they set a price with their listing agent.

And sellers who are in a hurry to sell could offer a home warranty as an incentive, or offer to pay a portion of closing costs to help buyers who may just squeak through on financing. (Read "8 ways to sweeten the deal on your home.")

In her troubled Florida market, Fernandez says, some sellers are even offering bonuses to agents who bring in a buyer.  

4. Don't go FSBO

Houses no longer sell themselves. You need someone with a lot of experience to give you advice and a lot of time and energy to do everything necessary to sell your home. Look for a hard-working agent who will give it to you straight on pricing, but still protect your interests once offers start rolling in.

Here are a few things to look for:

Find someone who is accessible and returns calls quickly.

Select an agent who will give your home a real Web presence with lots of photos or a virtual tour.

Pick someone willing to do open houses for potential buyers (not just brokers).

Find someone who sells a lot of homes in your area.

5. Ask for a pre-approval letter with any offers

With so much turmoil in the lending market, mortgage brokers say sellers should take measures to protect themselves.

Make sure the buyer has access to solid financing, before you limit your options. And just as buyers may seek a longer contingency for financing, that's something sellers should avoid.