Page Topics: How To Your Needs Calculations Your Team Your Property Offer Escrow Your Goal Real Estate - Buying a Property How to buy a property (Top) Here is a great educational resource for real estate purchases: http://www.hildrethhome.com/relocationguide/buyersintro.php  Buying a piece of real estate can be one of the most exhilarating, stressful, motivating, and satisfying experience one can have. Especially first-time home buyers will embark upon a wild roller coaster of emotions. The key is to do your homework, stay organized and remain on target until the home is purchased. If you do your due diligence and work with the right people you will have an exciting experience and the process will go smoothly. On the other hand, if you jump into the game unprepared you may very well be on the way to stress, disappointment, and failure. While you need to be decisive and avoid him-hawing around, you need to choose the right property for you (not your agent) and you need to calculate several factors to ensure you can handle the costs and challenges that go with the joys of home (property) ownership. The process generically consists of the following:  Determine what it is you want, whether it be your primary residence or an investment of sorts. Calculate what you can afford, how you will afford it, and what your limits are. Build your team - Interview and choose the right people to aid you. Prospect out the correct property. Place an offer. Endure escrow and closing. Complete your goal. Determine What Kind of Property You Want (Top) Your financial goals will determine what you want to accomplish when purchasing a property. Here are some questions you will want to ask depending on whether the purchase is for primary living or for investment purposes only. Primary Residence - Keep in mind that cosmetics are of minor importance when purchasing a home. Cosmetics can typically be renovated with little relative cost and effort. Be concerned about structural soundness and layout as well as the home's history. How many rooms are needed? How many  bathrooms?  Are stairs going to be a nuisance for the residents? How large should the home be?  How will heating and ventilation costs be affected by the home size? Do you need a garage? What is the history of the neighborhood? What is the history of the house? (have criminals ever lived there? has anyone ever died in the home?) How long do you plan to live in the home? How old is the home? How old are the appliances? (when will they need to be replaced?) Stove Refrigerator Washer Dryer Dishwasher Water heater Furnace etc. What is the condition of the structure? What is the age of the roof? What wiring is there? (cable, internet, plug ins) What insulation was used? How should the layout of the kitchen be? Investment Property - The key to investment property is to generate the strongest ROI possible. Ask questions that can minimize costs and improve benefits and income. Keep in mind also that the money of an investment is nearly always made in the purchase and not the sale.  How much will we have to maintain this property? How many units do we need? How old are the appliances and when will we have to replace them? When will the roof need to be replaced? Can the property be managed by someone else and their compensation be paid for by the property itself? What attracts tenants to the property? What attracts a new buyer to the property? What is the CAP rate? What is the vacancy rate? What are the neighborhood trends? What other city plans are scheduled for the area? Make Calculations to Determine Your Housing Budget and Limits (Top) Living within your means will keep your stress reduced and typically your success high. Choose Your Real Estate Team (Top) There are two extremely key players needed on your team to find the right property; each plays a different role. Having a great team versus a mediocre team versus a poor team can translate into many days, weeks, or months shaved off the process or added to it. It can mean many headaches or peaceful nights. You want to fill each hole with the right people or teams. Real Estate Professional - Regardless if you are buying or selling you are going to be paying your REP a good deal of money. Make sure they answer their phone and respond in a reasonable time frame. Find one who comes recommended. Lending Officer - Believe it or not, a high number of deals fall apart not because the purchaser can't qualify or the property can't qualify but because the lending officer flakes or doesn't know what they are doing. Each location has different regulations to deal with but make sure your loan rep knows what they are doing and hold them to the fire. Inspector - Your agent will likely find a great inspector. If you are buying you want to know what is wrong with everything and then what to do with it if it is in need of repair. Appraiser - You may not get a choice here because the lender will require their appraiser but if you know of someone who will do a "table appraisal" you may save a lot of time by having them check out a place ahead of time to make sure it will appraise. Investing Partner - Find a partner or several to help you get going. Interview them and look at their portfolio. Figure out what your role will be with them.  Mentor - Be a mentor or find one. You will want someone who knows the ropes to save you a ton of grief. Prospecting a Property (Top) Now our team is in place and we are ready to go shopping. This is the fun part. In fact this is the best part of the process. Have your agent look for homes on the MLS. If you really want to be effective don't get in the car to go look at properties until you have narrowed down where you want to live and have looked through the potential homes. If you see more than 4 at a time they all meld together and it is hard to make great decisions. Take a camera. If you find a house you like make an offer. Sleep on it overnight if you must but don't let someone else place an offer ahead of yours. Placing an Offer (Top) So, we found the place and we are ready to make an offer. How are your negotiation skills? An agent comes in handy here. He/she should be able to tell you how your potential home compares to others of its type in the area with regards to price. Typically you get to negotiate terms and price. Most homes should be reasonably priced for the area depending on their relative condition. You may gain some ground on price or when you need to close or you may get closing costs. Typically, if the home is priced competitively you won't get everything so don't expect it. Make an offer such that it makes the other side grit their teeth but not counter your offer. You want the house right? Offer just enough that they will give it to you but not too much so they think they need to come back. You will often loose ground if they counter. Endure Escrow and Closing (Top) Here comes the most stressful period of time for most home buyers. It is hell month for many people. Rely on your trusted agent and loan officer to get the job done. Expect 3 small bumps and a road block. You can overcome them all but you will always have something go a awry. Endure it and you will enjoy the purchase. Finishing Up the Project (Top) Now its time to move. You have closed and your loan funds. Now you can relocate and enjoy the new-to-you home. Refer to http://www.hildrethhome.com/relocationguide/movingintro.php for ideas on moving effectively and in a timely fashion.