As housing sales cool in many markets, a battle for new listings is heating up between traditional real-estate brokers and their discount rivals.

Full-service brokers, who generally charge 5% to 6% commissions, say their marketing expertise is needed more than ever to attract buyers in a soft market. Countering this are proponents of selling without an agent or with limited service, who say you can't afford to pay for a full commission now because your home isn't worth as much as you thought it was a few months ago.

Home sellers this spring may need to work extra hard to lure potential buyers.

The inventory of unsold homes on the market rose to an eight-year high in December, according to the National Association of Realtors. "We're definitely not in the market we were in a year ago," says John Wenner, an agent with Re/Max Achievers in Scottsdale, Ariz., adding that it now takes several weeks, no longer days, for most homes in his area to sell.

Time-tested advice still rings true: Sellers should focus on giving their home "curb appeal." The yard should be well-groomed and the grass green, and the exterior of the house should look attractive and well-maintained. Likewise, the interior should be immaculate. "The first impression is very important in this kind of market because buyers have so many choices," Mr. Wenner says.

Question: My husband and I are in our mid-20s and are interested in starting a business -- and purchasing a home -- within the next two to three years. We are wondering whether it makes sense to buy a home before or after starting the business. Would taking on a mortgage help or hurt us when we apply for small-business loans?

-- Courtney Myers, Arlington, Va.

Banks reported continued slowing in demand for consumer and mortgage loans in recent months, but the pace of slowing for mortgages appeared to ease, according to a Federal Reserve study.

The Fed's quarterly survey of senior loan officers, conducted in April, included responses from 57 domestic banks and 19 foreign banks operating in the U.S.