Make a Practical Choice, Not an Emotional One

Buying a home is the the biggest investment most of us will ever make, and it should be based on an informed and rational decision. With so many available possibilities these days, it just doesn’t make sense to rush into something with your eyes wide shut. Remain detached and logical. Forget the “ooohs” and “ahhhs” and and make a list of the “pros” and “cons” for every house you want to consider. Sometimes those fabulous “got to have it” features don’t stack up when you take your time to consider the drawbacks. Features are great, but don’t forget about your budget, the neighborhood, the commute, the schools, the crime rate…well, let’s go through the whole list together.

Be Realistic and Objective

Keep your mind open and your head cool. Don’t start salivating over that great pool you’ve been waiting for, and don’t rule out the well-built, but boring traditional home right away. Look at the age, the builder, the roof, quality of construction, room sizes, as well as the floor plan, taxes, and the street on which it’s located. Tell yourself ahead of time that you are going to reserve judgment and consider each house on all of its merits and demerits alike. It’s very easy to overlook vitally important factors when your head is clouded by a couple of amazing features. Take a step back and get a good look at the big picture. Then put all of the great features into context and see if they still seem so perfect.

Don’t Overspend

Well, of course the house that’s $30,000 above your budget is just perfect. And guess what? The house that’s $200,000 above your budget is even better. The worst mistake you can make is to get in even a little bit over your head. “Just a little bit drowned” is still deadly. The days of piling on tons of bubble equity every year to pull you out of a hole are gone. If you need to get more house, try a cheaper neighborhood or a smaller lot – or try a lowball offer. But be prepared to walk away if they counter it with a number that’s still too high. Set a practical, manageable and comfortable budget before you begin, and then stick to it. If it’s not in your budget, it’s not the house for you. Move on.

Don’t Take a Chance – Have it Inspected

Once you’ve done your due diligence, it’s time to make sure that the house is really what it appears to be. The only way to know for sure is to hire a certified home inspector. For about $400 (plus or minus $100) an inspector will evaluate all of the physical and mechanical aspects of the structure itself, The overall structural integrity of the foundation and walls will be scrutinized, as will the roof, siding, windows, concrete, and drainage. Signs of mold, dry rot, infestation, and water damage in the home's history will be assessed. The plumbing and electrical systems will be put to the test, as will the heating and cooling equipment.

You’ll get a full report indicating problems that need immediate attention, and well as deferred maintenance items you may need to deal with in the future. This gives you the opportunity to negotiate for repairs, obtain discounts with the seller or even to back out of the deal before you give your final commitment. An inspection can be a lifesaver, and you should always add an inspection contingency to any offer.

Look Before You Leap

Never let your decision to buy come ahead of any of the steps, considerations, and safeguards in the purchasing process. Go through the whole checklist before you decide. Don’t make the decision to buy – even if it’s just an emotional decision and not a contractual one – until you’ve looked under every rock, checked out the schools and the commute, talked to the neighbors, checked with the police department – the whole nine yards. Once you let the appeal of the house get under your skin, it may be too late.

The best way to make sure that you have all of your bases covered is to hire an experienced real estate agent. He will keep you on the right track, help you dig up all of the information you need to make the right decision, show you all of the great possibilities available to you, and keep you grounded in the reality of the situation. Remember, he’s been through the process dozens of times, he’s a skilled negotiator and knows the area and the market, and he knows all of the little things to watch out for that you might never consider. With a decision this important, don’t leave anything to chance.