10 Tips for First-Time Home Buyers (the next 5)

#6. Take off the rose-colour glasses. Keep a file that let's you compare apples with apples when it comes to the features of a home. You should take pictures of each home you visit, making notes about what you like and don't like, and attach these to your listings. Put them all away for a couple of days and then bring them all out and look at them based on lot size, the living space in the home, extras included or excluded, and any other parameters you may have set like local schools or distance to transit or work.

#7. Resist the "we can fix that" bug. Unless you negotiate those fix-up costs off the price of your house, where are you gonna come up with the money to make your dream house a reality. Sure, there are things you'll want to do given some time and planning. New floors are something you can save for (I waited two years for my new floors!) and execute down the road. But the house has to be livable. If you're always going to be apologizing because there are things you want to do but don't have the money yet, don't buy that house. And if you're considering more debt to make your home perfect, give your head a shake.

#8. Don't think short term. Selling and buying another house is an expensive proposition. There are legal fees, taxes, moving costs and real estate commission. Until your home has appreciated to double what you spent on closing (and what the other guy paid his agent to sell you the home), you shouldn't consider moving. Make a file folder for your home and write this number on the front.

#9.  Consider resale. Since you may want to sell one day, you should think about the resale potential of the home. While there are lots of things that can be changed and improved in a home, some things can't. If you have a railway line running past your home, you're facing a factory or your neighbour is an empty lot that could be turned into an industrial park, you're going to have to be patient when it comes time to sell.

#10. Don't fall in love. First-time home-buyers (and second, and third) can be suckers when it comes to negotiating the "house of their dreams". Don't buy without a conditional on financing clause even if you've been pre-approved. And don't buy without an inspection clause, no matter how good the house looks. Always be prepared to walk away if there's a bidding war that takes the home out of your price range. There WILL be another house. This ISN'T the only house for you. Keep your wits about you and don't make this big a decision with your heart or your ego.

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