Buying or selling a house is not just as buying or selling another product, you need to keep these things in mind...
1. Use a trusted realtor.
We all know that realtors get a cut of the sales price of a home which makes some buyers hesitant to use a realtor: they believe it drives up the overall cost. Keep in mind that the seller, not the buyer, pays the commission. Potential buyers should keep in mind that a listing agent (the agent representing the seller) doesn't protect their interests and "that agent would simply pocket both sides of the commission". That means that you're not saving money. A savvy realtor who works for you can protect your interests and guide you through the buying process (which is usually hard to understand!) - from negotiating a price to navigating home inspections.
2. Remember that a house purchase involves a contract.
Of course it involves contracts! Who doesn't know that? The question here is: do you know how to read a contract? Do you understand every term and condition written in there? Not knowing what you are agreeing with, can bring BIG consequences.
3. Don't necessarily buy for the life you have today.
Chances are that buying a house will be one of the bigger financial commitments you'll make in your lifetime. Before you agree to buy what you think might be your dream house, consider your long-term plans. Are you planning on staying at your current job? Getting married? Having kids? Depending on the market and the terms of your mortgage, you may not actually pay down any real equity for between five and seven years: if you aren't sure that your house will be the house for you in a few years, you may want to keep looking.
4. The Real Estate Market is a mystery. Educate yourself.
Two houses looking similar. Same area. At the same time. Two different prices. Not necessarily the cheap one will be the best option... or vice versa. Use your real estate agent.
5. Location, location, LOCATION!
How far is the house to your work place? Do you have to drive 3 hours to take your kids to school? Do you need a bulletproof car to leave your house after 7pm? Location is VERY important when looking for a house.
5. Look beyond paint.
Two perspectives: 1) Paint can be perfect, but make sure the structure of the house is perfect, and the walls and roof are healthy. Those walls can be recently painted just for showing purposes. 2) Paint can be bad, but that doesn't mean the walls and roof are unhealthy. It's possible that with very little budget you can repaint everything.
Important in a house is distribution of rooms, the health of the structure. That's when an experienced realtor will come in handy.
7. Buy the house you know that you can afford.
This can be different from the price that your mortgage company believes that you can afford. Your economy can change from time to time. Some lenders suggest that you can afford mortgage payments totaling about 1/3 of your gross income but others suggest closer to 28% for housing related costs including mortgage, insurance and taxes.
8. Don't fixate on the purchase price.
The purchase price is just one piece of owning a house: be sure to consider all of the costs associated with your potential new home. That includes the cost of insurance, homeowner association fees and real estate taxes - depending on where you live, those can quickly add up. Your agent should be able to guide you..
9. READ the contract.
All contracts look the same. But they can be very different. A house is probably the biggest investment a family does in their lifetime. Make sure you understand all the terms on it. Here is where a real estate agent can help A LOT. If your agent doesn't fully understand a contract, get rid of him. There will be many others willing to help.
10. Take your time.
Buying a house is usually forever, or for a long period of time. You don't want to regret buying a house you don't feel quite good about. Take your time to choose and analyze options... but don't fall asleep deciding because this market moves fast, and the house that better fits you might get sold!!