Buying a home is perhaps the most arduous, expensive and, ultimately, valuable acquisition you'll ever complete.

Just one mistake could mean disaster -- perhaps the worst mistake you'll ever make.

In order to avoid titanic trip ups during such a trying transaction, RealEstate.com suggests buyers get to know the most common home buying blunders.

To know them is to avoid them.

Going solo Buying a house is a complex transaction. It should be a team effort. You'll need a real estate agent, lender, inspector, insurer, perhaps a lawyer and other team members to help you through each step of the way. Team build before you start the search.

Love at first sight If you believe in fairy tales you probably shouldn't be buying a home. You won't live happily ever after if you emote your way through the home buying process. Your home should fit your real needs, not your yen for drama. Buy a home that fits your budget and your lifestyle. Be sure the home is in a community and neighborhood you desire. Visit neighborhoods several times before you buy to check out schools, noise and traffic patterns.

'Loanless' shopping Being pre-qualified gives you a general idea of how much you can afford to borrow. It's better to be pre-approved for a given loan. Sellers will take you more seriously. You'll stay on budget.

Overbuying Home buyers buying more than they could truly afford, in part, led to the collapse of the housing market. Buy more than you can afford and your dream home will become the same nightmare. Analyze all your monthly costs including debts, food, transportation, entertainment, and savings. Your total monthly debts, including your mortgage, should not exceed 36 percent of your income before taxes. Don't forget to budget closing costs (often two to five percent of the home's purchase price), plus moving, redecorating and maintenance. Look ahead and allow for increases in ongoing expenses such as utilities and taxes.

Misplaced trust You are engaged in what's likely your most valuable acquisition ever. It's a business transaction. Ask family, friends, co-workers, professionals and others you trust for referrals, but don't take their word for it. Vet your team members.

Accepting oral agreements Get it in writing. The rate lock, the home inspection, disclosures, the contract. Always. Should a dispute arise, you've got the details documented.
Skipping the fine print Understand what's really in any document before picking up a pen. Get documents in advance, take time to read them and ask questions. Get copies of your mortgage and closing papers a few days ahead of closing.

Forgetting or betting on resale Avoid buying a home that costs 50 percent more than neighboring homes. Reconsider buying the most expensive home on the block. Neighbors' lower home values will weaken yours. Buy intending to flip your investment only to have the market fail means when it's time to sell your price may not cover your costs.

Making an unconditional offer Protect yourself with these contingencies:

• Mortgage financing. You may be preapproved but is the house? A formal appraisal confirms -- or not -- that there is sufficient value in the home to warrant the loan. If the house appraises lower than the sales price, the loan may be declined.

• Inspection. Never buy an existing or new home without a thorough home inspection. Walk through the home with the inspector to learn more about the house and any concerns he or she may have.

• Insurance. Confirm you can get adequate insurance coverage. In some areas, or following certain disasters, it can be difficult to get types of hazard insurance.

by Broderick Perkins

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Homeownership can bring with it many blessings. Yet, the idea of caring for and maintaining a home, as well as affording a mortgage can seem daunting, but let's review some of the many reasons that homeownership can be beneficial.

The most obvious benefit is building wealth. The U.S. Department of Housing and Urban Development (HUD) notes that "home equity is the largest single source of household wealth for most Americans."

What is home equity? Home equity is the difference between the home's fair market value and the outstanding balance of all liens on the property. Let's say you have a balance of $100,000 left on your home's mortgage, but the property appraises for $150,000. You now have $50,000 worth of home equity.

And let's not forget about appreciation. While there is no set year-to-year rate that is considered normal, reports indicate that you can expect around a 6.5 percent average value increase in your home each year.

The National Homeownership Strategy cites that “through homeownership, a family ... invests in an asset that can grow in value and ... generate financial security." This is what sets homeowners apart from renters.

Other wealth builders to consider are tax breaks and tax credits, such as the deductibility of property taxes and mortgage interest and the exclusion of capital gains, and the $8,000 first time home buyer and $6,500 home buyer tax credits.

But beyond the numbers and the long term investment benefits, studies have shown that owning a home can actually make you healthier, and make your children happier.

Homeownership allows people to have greater control and inspires responsibility over their living environment. It helps stabilize and strengthen communities. And it helps generate jobs and stimulate the economy (National Homeownership Strategy)

The U.S. Department of Housing and Urban Development (HUD) reports: “Homeowners accumulate wealth as the investment in their homes grows, enjoy better living conditions, are often more involved in their communities, and have children who tend on average to do better in school and are less likely to become involved with crime. Communities benefit from real estate taxes homeowners pay, and from stable neighborhoods homeowners create”

And according to NAR’s Social Benefits of Homeownership and Stable Housing, homeownership brings with it:

• Higher educational performance and better behavior of children
• Lower community crime rates
• Lessened welfare dependency among households
• More household participation in civic affairs
• Better household health

These wonderful benefits only graze the surface of the world of benefits that awaits you in homeownership. Be sure to talk to your real estate agent about what other good things come your way when you buy a home.

by Carla L. Davis


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Provided your home-for-sale has the curb appeal to get potential buyers inside, keeping them inside for a further look requires a staging strategy that sticks the deal.

HGTV's FrontDoor.com offers what it considers the Top 10 tips that can turn a languishing listing to a multiple offer attraction.

• Reclaim the yard. First impressions rule. Spruce up curb appeal by maintaining a clean yard, adding plants for a splash of color and applying a fresh coat of paint to the front door.

• Let the foyer flourish. The home portal sets the tone for the entire home. Make the space up-to-date, well-maintained and eye catching -- top to bottom.

• Back off beige. Don't let neutral colored walls dominate a room. Splashes of color liven up boring spaces. Throw pillows, artwork and fresh flowers add pops of color and personality.

• Cure kitchen craziness. Consistency pleases. All countertops and cabinets should match. New hardware, a new backsplash and a thorough cleaning can transform a bleak kitchen into one with smiles.

• Denude the dining room. De-cluttering and depersonalizing is the first rule of home staging. Homebuyers can have trouble envisioning themselves living in a home that's full of the seller's personal items.

• Avoid focal point faux-pas. Highlight the great features in a home by positioning furniture to highlight them. Windows, fireplaces and other architectural details will be noticed by a buyer if they are emphasized in the home correctly.

• Perk up the patio. The outdoor space is an extension of the home. Capture a higher selling price by cleaning and adding style to any outdoor space with furniture, lighting and accessories.

• Master the master suite. The best approach to staging is often working with existing accessories. Using what is already in the room and repositioning the furniture will highlight the room’s best features.

• Cure bathroom blues. Older vanities and dreadful wallpaper will make any bathroom feel outdated. Apply a fresh coat of neutral-hued paint and new hardware to modernize and brighten.

• Repurpose extra rooms. The value of a space decreases when homebuyers see a room without direction (think part office, part playroom, part home gym). Though almost every homeowner is guilty of having a "junk room," take sure to stage each room with a clear purpose before putting the home on the market.

by Broderick Perkins

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In an uncertain housing market, an effective real estate agent can be a big help to consumers looking to buy or sell property. But not all real estate agents are created equal. Consumers who end up with a dud throw additional risk onto what's already likely to be the largest financial transaction of their lives. Choosing a real estate agent is a major decision, says Ron Phipps, a broker with Phipps Realty in Warwick, R.I. "So you want to make sure—whether you are selling or buying—that you have somebody who is effective for you." But with so many options, how do you pinpoint the best broker? To help consumers struggling with this question, U.S. News spoke with a number of brokers and compiled a list of seven ways to avoid a crummy real estate agent:

1. Locate candidates. Begin your selection process by putting together a slate of qualified candidates. Start by speaking with friends and relatives who have recently bought or sold a home. What did they think about their agent? Would they use him or her again? "Get some really good word-of-mouth recommendations from people who have used an agent," says Pat Vredevoogd Combs of Coldwell Banker AJS-Schmidt in Grand Rapids, Mich. "That is a key piece to whatever you are doing." Although often overlooked, title representatives can also be good sources for referrals, according to Joshua Dorkin, founder and chief executive of BiggerPockets.com, a real estate networking and information site. "I tend to think title [representatives] are probably a source that folks don't really think about," Dorkin says. "But they are going to know who the good agents and the bad agents are because they are the ones sitting in the room at the end." Dorkin also recommends that prospective home sellers keep their eyes peeled for properties in their neighborhood that have sold quickly and inquire about the agent responsible.

2. Run background checks. Once you've got a handful of names, it's time for a bit of amateur detective work. Plug the names into Google or your local newspaper's online search engine and see what pops up. "If you Google somebody and you can't find their cell phone [number] and you can't find their E-mail and you can't find their [website]—you don't see them marketing themselves on blogs and various websites, on Twitter and Facebook—it probably means that they don't necessarily have the marketing skills in this day and age to do the job." At the same time, Phipps says consumers can even run a background check on the agent through their state's real estate licensing board's website. "Make sure that the person you are [considering for your agent] has a license—It may seem obvious but sometimes you forget that," Phipps says.

3. Conduct interviews. After narrowing down the field of candidates, meet the agents face to face. "The main thing is to sit down with the Realtor and make sure that you feel comfortable with that individual and you feel like you can have a working relationship with them," says Judy Moore of Re/Max Landmark Realtors in Lexington, Mass. "Because it is definitely a partnership between the two." But make sure to tell each agent upfront that you are interviewing others, says Elizabeth Blakeslee of Coldwell Banker Residential Brokerage in Washington, D.C. "Don't surprise them with it after the agent has spent a couple of hours with you," she says.

4. Establish experience. In addition to getting a feel for an agent's personality and professionalism, there are several key qualifications consumers should establish during the interview. Determining the agent's experience in your target market is perhaps the most important. "You really need to ask them where they work most of the time: Where do you live? Where do you work? What area of town are most of your transactions in?" Vredevoogd Combs says. Consumers should look for agents with extensive experience in the area where their transaction is taking place. Vredevoogd Combs uses the analogy of a patient searching for a surgeon to perform an appendectomy. "Are you going to be his first patient, or has [the doctor] done 10,000 of them?" she says.

5. Consider communication. Consumers need to be sure that their agent will communicate effectively with them as the process unfolds. "Those who are Gen Xers want to only talk to you via E-mail and text, and there might be some agents who might be of an age where E-mail and text aren't the major ways of communication," Vredevoogd Combs says. "Misunderstandings happen when you don't have all of that worked out upfront." But regardless of the form of communication, consumers need an agent who is responsive and easy to reach. "And you can test that," Dorkin says. "Call them on off hours and see if they respond and how quickly they do respond … If they don't get back to you [promptly], that is a huge red flag."

6. Know resources, commitment. An agent who has robust resources will often be able to produce better results for their clients, Dorkin says. He suggests inquiring about the additional resources—such as a staff—that the agent can bring to bear on the transaction. "A bonus would be if somebody has a team or an assistant," Dorkin says. "That's just kind of a good sign that they have got their business structure together." He also recommends that buyers steer clear of agents who work in real estate only part time. "They are probably doing that and something else, whether it is raising a family or doing another job," he says. "You do want somebody who is fully devoted to being either a sales or a buyer's agent."

7. Call references. Finally, consumers should ask agents for a list of clients they have represented recently. "References are good—but the thing that most people don't do is they don't call them," Phipps says. "Call them." When speaking with references, consumers should try to find out as many details as possible about the agent's performance during previous transactions, Dorkin says.

By LUKE MULLINS

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