Compare Homes

Before you make a decision, you should compare your wants and needs. Also look at the short-term and long-term costs associated with each house you're considering. Are the appliances in good condition? What about the back yard? What are commuting costs?

It is important to understand the true costs of the home. The mortgage is the primary cost but may not be the only cost. Factor in homeownership association or condo association fees, any work that needs to be done to the home, look at the maintenance that will be required, see how taxes vary from home to home. Make sure you know all the costs associated with each home. This will help you decide on a house that fits your budget.

A good estimate for home maintenance is 1 – 3% of the market value of the home each year. This is simply a number to help think about home maintenance. In a real estate market where the market value is changing, it doesn't necessarily mean your home maintenance numbers are changing too. Other factors that could impact a home maintenance budget include the age and condition of the home when you buy it. The important thing is to remember that home maintenance is an expense that needs to be accounted for when determining your housing budget.

Use written descriptions of each home - from your worksheets or your real estate agent - to help you compare. Revisit your wants vs. needs worksheet [PDF 54K ]. And don't forget to look at your neighborhood wants vs. needs worksheet [PDF 40K ].

Making An Offer

Once you've found the right home, you'll need to make an educated offer. Knowing a home's real value can help you make a fair offer. A home's value is determined by:

• Sale price history.
  You can get the home's past sale prices through county courthouses and recorder's offices, many of which have this public information also available online. You can also check with your real estate agent. See if the value has risen or fallen over time.

• Home characteristics.
  The number of bedrooms and bathrooms, square footage, and other characteristics greatly affect the value. In many cases, the seller and their agent provide this information to all prospective buyers. You can also get this information from the tax assessor's office.

• Similar home prices.
  Ask your real estate agent for sale prices of comparable homes in the same neighborhood.