When it comes to buying a home, remember: Look before you love.

Home for keeps

You've found the perfect home – but htere are a few things to know before you commit.

by Audrey Becker
4/26/00

Who is on your side? You are.

Finding the so-called perfect home is a lot like finding the perfect mate. If you’re too picky or overly idealistic, nothing will ever seem good enough. Then again, you don’t want to feel like you’re settling for something out of desperation.

If you’re smart, you’re looking for a good match: A home you can accept with all its flaws and – most importantly – a home that you can understand and love.

Sappiness aside, one of the first steps in finding the right home for you is figuring out exactly what you’re looking for. Location, style, size and price; these are the primary questions only you can answer. But once you do, here’s a primer for what comes next.

Spot the one

Gather as much information as possible about buying a home. Read books (see sidebar for several recommended ones), check the Web, ask home-owning friends to share their experiences. Their anecdotes and complaints contribute to your overall grasp of the subject.

Keep a keen eye on the market. Read the real estate section religiously. Attend open houses. Learn the lingo. You want to be in a position to recognize the house that’s right for you when you come across it.

If you’ve done your research, you should have a good general idea of what the home you’re eyeing is worth. In no time, you’ll be talking confidently about "comps" (comparable homes in a given area and their purchase prices).

Matchmakers, matchmakers?

Remember, the seller’s agent isn’t representing you, and therefore isn’t necessarily looking out for your best interests. What’s more, your buyer’s agent may not have your best interests in mind either. In most cases, he or she gets a percentage of the purchase price of the home. The higher the price tag, the higher their paycheck.

So, who is on your side? Why, you, of course. And presumably anyone you hire yourself. Agents will gladly refer you to their favorite and trusted lenders, appraisers and inspectors, and an honest agent will likely steer you in the right direction. But unless you’re absolutely certain that you’re being well-advised, you’re often much better off putting together your own support team. Whenever possible, seek advice from people who have no allegiance to the agent.

The proposal

When first-time buyers find the right home, they enter terra incognita: The offer. You must decide how much you’re able to spend, how much the home is worth, and how committed the seller is to selling.

Don’t let emotions overwhelm your otherwise better judgment. Being rational at this point will work to your advantage.

In most cases, your offer to purchase will be prepared by your agent. This is usually the same document as the agreement of sale, and outlines many features of your transaction with the seller(s), beyond just the purchase price.

Prenuptial agreements

If you’ve been thinking ahead, you have already reviewed the contracts your agent uses. You have studied each and every clause to familiarize yourself with the legalese. (It may take a couple of readings, but you can and should understand everything you’re signing.)

You may be told that the contract is "standard." Have some grains of salt handy. Granted, many of the clauses within contracts won’t require tweaking. But contracts can – and should – be customized.

Take the contingency most commonly found in such contracts: The home inspection clause. Make sure the wording is just as friendly (or more!) to the buyer as it is to the seller. If it isn’t, change it.

An inspection contingency is an engagement of sorts. You’re wearing the ring, you hope to make it to the altar. But if something goes seriously awry, you can return that band of gold and call off the wedding.

Evaluate the future

This isn’t to say inspections aren’t a good thing. Quite the opposite, actually. Inspecting the home allows you to re-evaluate your initial offer, if need be.

An inspection means you bring in an expert to evaluate the foundation, the masonry, the roof, the plumbing and other major systems – a diagnosis of the guts of the house. Listen carefully as the inspector evaluates wiring, joists and girders, pipes, insulation, sewage disposal and other such concerns.

Matthew Bezanson, of the aptly named Sherlock Homes Inspection, advises, "The most important thing a buyer can do for an inspection is be there – body and soul. The inspection generates a flood of information, and you need to absorb this information."

Don’t bring your kids or your friends along at this point, recommends Bezanson. They’re a distraction. Some buyers may bring a video camera along, because a videotaped record is more accurate than the average person’s recall and – if you end up purchasing the home – it makes an excellent source of personalized information about your new property.

Be sure to look for an inspector certified by the American Society of Home Inspectors (ASHI). And, one hint: This isn’t the time to be frugal. The $300-$400 you spend on an inspector’s expertise is a mere pittance compared to the sums you’ll spend to fix problems you should have discovered before completing the deal.

Most inspection reports combine checklists with written explanations of the findings. While the checklist serves a definite purpose, the written descriptions are the most thorough and informative, so look for an inspector who will provide them.

The happy ending

Remember, there is no such thing as a perfect house. You will find problems. But hopefully, with the information you’ve gathered from your reading, your research, your networking, your lunchtime conversations with co-workers and your inspection, you will be able to finally cross that beautiful threshold.

Freelance writer Audrey Becker recently bought her first home, in Detroit.