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Narrow your home search by identifying neighborhoods that are right for you. This helps keep your search focused and efficient. Your local REALTOR® can offer neighborhood information to guide you in your search.

When evaluating a neighborhood you should investigate local conditions. Depending on your own particular needs and tastes, some of the following factors may be more important considerations than others:

• quality of schools
• property values
• traffic
• crime rate
• future construction
• proximity to schools, employment, hospitals, shops, public transportation, prisons, freeways, airports, beaches, parks, stadiums, museums, and theaters

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Neighborhood Search Strategies for Limited Budgets

If you’re a first-time buyer with limited financial resources, it’s wise to buy a home that meets your primary needs in the best neighborhood that fits within your price range.

• Upcoming neighborhoods: Look for communities that may become more desirable over time, especially those near future development, transit, or new services.
• Neighborhood demand: Ask your real estate agent whether multiple offers are common, whether homes are selling near asking price, and whether there is active community involvement.
• Co-ownership: Consider purchasing a condominium or co-op instead of a house in a desirable neighborhood.

Here are some tips to help determine which house is best for you.

Once you’ve settled on a couple of preferred neighborhoods for your home search, it’s time to pick out a few homes to view. Having a house-features wish list keeps you focused on which features are most important to you.

• know what types of home you want to buy
• determine what age and condition of the house you want to buy
• consider resale potential
• use a features wish list to keep focused
• use a home search comparison chart to keep organized
• act decisively when you find the right home

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Determine What Type of Home You Want to Buy

Single-family homes: One home per lot.

Multiple-family homes: A good option for some first-time buyers who want rental income to help offset costs.

Condominiums: You own your unit and share ownership of the common elements.

Co-ops: You purchase shares in a corporation that owns the building and receive a lease to your unit.

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Decide What Age and Condition of Home You Want to Purchase

Weigh your needs, budget, and personal tastes when deciding whether to buy a newly constructed home, an older home, or a fixer-upper.

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Consider Resale Potential

• One-bedroom condos are harder to resell than two-bedroom condos.
• Smaller single-family homes often have less appreciation potential than larger ones.
• Homes with strong curb appeal are generally easier to resell.
• The best investment potential is often found in a moderately sized home.

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Use a Features Wish List

Make a features wish list to keep your search focused and effective.

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Use a Home Comparison Chart

Take notes while house hunting so it’s easier to compare properties later.

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Act Decisively When You Find the Right Home

When the right house appears, be prepared to act promptly. In competitive markets, waiting too long can mean losing the opportunity.

If you approach the home buying process intelligently and with confidence, you are much more likely to buy a house you’ll be proud to call home.

• How much house can I afford?
• How can I find the best loan?
• How much will I need for a down payment?
• Should I buy new or resale?
• Should I work with an agent or search on my own?

1. You can and should understand everything happening in the home buying process.

If something doesn’t make sense, ask for a complete explanation. You deserve to understand each step.

2. You are the most important person in the process.

The transaction only happens if you decide to move forward. Surround yourself with professionals you trust and make them work for you.

A real estate agent can help you understand everything you need to know about the home buying process.

REALTORS® subscribe to a Code of Ethics and are expected to maintain a high level of knowledge about buying and selling real estate.

1. Your REALTOR® can help determine your buying power.
2. Your REALTOR® has resources to assist in your home search.
3. Your REALTOR® can provide objective information about each property.
4. Your REALTOR® can help with negotiations and inspections.
5. Your REALTOR® provides due diligence during the property evaluation.
6. Your REALTOR® can explain financing options and connect you with lenders.
7. Your REALTOR® can guide you through the closing process.

Home Inspections Avert Future Headaches

The best way to avoid unpleasant surprises is to arrange for a home inspection before you buy.

Home Inspections Help You Avoid Unpleasant Surprises

A good home inspection is an objective, top-to-bottom examination of the home and its systems, including HVAC, plumbing, wiring, roof, attic, walls, floors, windows, doors, and foundation.

Getting an Inspector

Ask your real estate agent for a recommendation, or find one through referrals or online directories. It’s best to use an objective third-party inspector.

An Inspection Will Educate You about Your House

A home inspection helps you learn about your purchase and protect your investment.

Inspection Timing and Results

Buyers usually schedule an inspection after signing a contract. If serious issues are found, the contract can often be renegotiated or canceled if inspection contingencies are included.

A written proposal is the foundation of a real estate transaction. It specifies the price and the terms and conditions of the purchase.

What is in an Offer?

• property address and legal description
• sale price
• financing terms
• seller’s promise to provide clear title
• target closing date
• earnest money amount
• tax and utility prorations
• inspection and title-related terms
• time limit for acceptance
• important contingencies

Contingencies

• financing approval
• satisfactory home inspection

Negotiating Tips

• Cash buyers are often in a stronger position.
• Preapproved financing helps.
• Flexible closing dates can help make your offer more attractive.

Earnest Money

This is the deposit that accompanies your offer to demonstrate good faith. It usually becomes part of your down payment.

Seller Response

The seller may accept, reject, or counter your offer. A contract becomes binding only when one side accepts the terms unconditionally.