Tips on Buying a Home

Home sellers expect to negotiate with buyers so they'll usually list their homes at a higher price than they expect to receive. Knock 10-15% off the asking price when placing a bid. Lowball your offer. The worst that can happen is the seller will decline your offer.

The most expensive home in the neighborhood is going to be bigger, newer, have more features and increase in value more slowly than other houses in the area. Look for a home that falls in the middle price range for the neighborhood.

Tell your friends and family you're looking to buy a home and ask them to keep their eyes peeled for new 'For Sale' signs that pop up in their neighborhoods. Don't wait for your agent to bring homes to you.

Ask your real estate agent to focus on strongly-motivated sellers. A house that sits empty is a major liability to the owner who now pays two mortgages a month - one on the old house, one on the new. Now that's a motivated seller. Low-ball your offer and see what happens. You could save tens of thousands of dollars on the purchase price.

The value of a home nestled in the woods will increase faster than one next to the airport. Don't forget, not only will you be buying a home, chances are, you'll be selling it as well. So, when you buy, think about selling the same home down the road.

When your mortgage lender qualifies you for a loan of, let's say, $150,000, that doesn't mean you have to buy more house than you need. If you find the right house for you and your family, and only need to borrow $100,000, so much the better. Why stretch your paycheck to the breaking point each month paying for more house than you need? Living below your means will provide peace of mind and a growing investment portfolio.

By law, your real estate agent works for the seller since it's the seller who pays the agent. However, you can hire a buyer's agent and it won't cost you a dime. Your agent will look after your best interests throughout the process and then split the commission with the seller's agent.

Anyone looking to buy a home should investigate community-based housing programs. Information on these programs is available through the municipality where the home is located. Each program is different but most offer lower interest rates and/or help with closing costs. The homebuyer will have to meet any program qualifications. The web is a great place to begin research. For example, in Baltimore the best site is livebaltimore.com. Most states also have a Housing Development Authority that can provide valuable information.

One factor in the determination of housing costs is the school system. Homes in towns with good schools can sell for 20-30% more than an equivalent house in a town with a poor school system. Always buy the home in the town with the best school system. To learn more about the demographics of the town you're considering, talk to local realtors or their websites for the latest on everything from school systems to proposed property tax hikes.

If you've found the right home for your family, log on to the Internet, do a real estate search of the neighborhood to learn what other homes in the area have been selling for. There are government sites that list what houses have sold for in your area.

Have the home inspected before you purchase it, especially an older home. The $200 - $500 that a professional home inspection costs could be the best money you ever spend on your house. Not only does the home inspector find defects in the home's systems, condition of the roof and siding, and any structural or mechanical problems (including termite damage), the home inspector may also provide tips on maintaining and repairing your house.