Whether you are buying your first home, or your fifth, the process of buying a home is a detailed, time-consuming venture. And it can be filled with difficult, emotionally draining choices. You want to ensure that the home you purchase meets your family's needs now and in the future, and you will want to ensure that you don't pay too much. With this information, you'll be closer to finding your ideal home.

Before you shop, develop a needs-versus-wants list

Everyone has a picture of an ideal home. This would include all the features you not only need, but have long desired. However, when it comes time to buying a home, the desires cost more. While it's nice to think about having a beautifully landscaped backyard, or a solarium, perhaps even some built-in appliances, these are usually considered luxury items, which can add considerably to the price of your home.

That's why it's a good idea to start with a needs list. With this list, begin with items you really need like adequate space, garage and number of bedrooms. For most people, basic needs should be considered first. After that, you could consider additional desires if you can manage these benefits financially. With such a list in your hands, you're less likely to be caught up in the excitement of the pursuit. You'll have a good idea of what you want, within you price range, and if you can afford those additional items.

Get pre-approved by a lender prior to shopping

Visit your financial or lending institution prior to home buying and get an approval for a mortgage in writing. You'll then know how much you can pay for a home. Most important, you'll tell sellers that you are a serious prospect. Depending upon market conditions, a seller may lean towards an unconditional offer. You'll have less negotiating power if you have to wait for mortgage approval. Banks and financial institutions have developed many programs especially for home buyers. When you review your needs and objectives with a lending officer, you'll be one step closer to purchasing your home.

Choose a buyer's agent

Buying a home is a complicated process with many people involved. From choosing the right mortgage, to finding a home inspector, to viewing available properties, buying a home involves many steps. With a buyer's agent at your side, you will have help every step of the way. Remember: a buyer's agent like Carolina Select Realty represents your interest. Home listing agents represent the interests of sellers.

Communicate clearly with your agent

Spending time with your agent will reap huge dividends. When you have a clear picture of the type of home you're looking for, your agent can come closer to finding the home you want. You won't waste time looking at homes that don't match your needs.

It's still true: location, location, location

You've heard it so many times that it's probably starting to sound like a broken record. That's because it's true. A home is not a standalone item. Rather the value of a home is greatly affected by the surrounding homes. Don't let your emotions determine your purchase. Think resale. The desirability and resale value of your home depends largely on location more than any other factor. People want a desirable community that includes character, quality of schools, access to work, major transportation arteries and recreational facilities.

On your viewing trips, take a careful look and ask the following questions: How does this home compare to others in the neighborhood? Are yards fenced? Are there many children playing in the streets? Are front and backyards and the exterior of the homes properly maintained? Walk around the neighborhood and get a feel for the area. You may want to speak with a few neighbors to get their comments. If you like the community, carefully examine the home you like.

Generally speaking, extremely large homes surrounded by smaller homes tend to appreciate less than a large home among other large homes. Alternatively, the smallest home in the neighborhood tends to stand out, too. Sometimes, it could take a bit longer to sell a smaller home, as some people are reluctant to pay extra for the neighborhood.

Additional factors that affect the property value of a home include traffic, sounds, smells, zoning bylaws. Be objective. Don't rely too heavily on your emotions. Be sure you are completely satisfied with the neighborhood. If you choose a neighborhood with problems, you likely won't get as much as you hoped with it comes time to sell.

Use your agent's knowledge of the community

Your agent is trained in all aspects of real estate including understanding supply and demand, economics and the neighborhoods of the city in which they practice. As they regularly view homes as they come on the market, they know about housing trends and prices. They can save you time and money, by narrowing your prospects to only those that meet your requirements. It is a time consuming to view every home available that meets your needs. Agents can do much of the work for you, by reviewing your needs, reviewing the properties and then, hopefully, advising you of a potential match. A comprehensive knowledge of the available homes in your neighborhood is one of your agent's strongest assets. With the aid of computerized systems, an agent is notified within hours when a home becomes available. If you understand current market conditions, you'll position yourself better as a buyer. It helps to know if you're in a seller's market (where housing demand is high and supply is low) or a buyer's market (where housing demand is low and supply is high). In a seller's market, you may have to make a full-price offer or higher just to beat the competition. In a buyer's market, you have more room to negotiate.

Check your emotions, and shop with your head

When people purchase a home on emotion, without an objective view of the property, problems may develop later. Shopping for a home is an emotional process. It could be costly. Using your head, along with asking for an objective opinion of your agent could help you avoid costly errors.

Assess the condition of the home

Legally, sellers must disclose all known material defects of a property. Ask for this in writing. Also be sure to consider the ramifications of these defects. Will it be costly down the road? Are they "serious" defects? When evaluating a home, be sure you know the difference between acceptable and unacceptable problems. Cosmetic items like peeling paint, worn carpeting, unattractive wallpaper can be easily remedied. You could use these as negotiating items, as there will be costs involved in updating the home. Major problems, however, are clearly "red flags." Look for items such as major foundation cracks, water damage, outdated electrical systems, and inadequate plumbing. These items could cost you dearly in the future. Finally, a home inspection is an inexpensive way to gain peace of mind, and guard your pocket book. A proper inspection will cover all areas of the house including foundation, electrical, heating, plumbing, floors, walls, ceilings, attic, roof, siding and trim, porches, patios, decks, garage and drainage. A professional inspector can give you an objective view of the property, with a written report, indicating the present condition and items that will need repair.

Be cautious with fixer uppers

Some people may be inclined towards purchasing a home that needs some work. This could be a challenge and an opportunity to make money. Sometimes, a fixer-upper can be purchased below market value. However, not all fixer uppers will bring in the profits you might expect. It depends upon the price of the home, the amount of repairs needed and the market conditions at the time of sale. If the home is not priced low enough, you may not recover your investment of time, trouble and money. Before you purchase what looks like a quick way to profit, carefully consider the condition of the home and all the repairs that need to be made. Get several estimates. Complete a comprehensive budget. Also consult with your agent. He or she can give you an idea of what you can reasonably expect to recover when the home is put back on the market.

Consider your future needs

Take a look at your lifestyle now and in the future. Will you need extra space for a home office, a child, or perhaps a child moving back home? Perhaps it may be easier and less expensive if you purchase a home that can meet these needs now, rather than moving up to a larger home a few years later.

Proceed quickly

When you're ready to buy, move fairly quickly because good properties usually sell fast. This is especially true when there is a shortage of homes available. However, when you work with a agent, you have access to the most current technology. As part of the MLS network, a agent has access to properties within hours of when they are listed. When a agent knows your needs, they will notify you when properties that meet your criteria become available. Many agents now have personalized web sites which allow you to sign on a client, and receive notification of these listings via email. You save time and effort, and you can view only those homes that come closest to your needs. Finally, an agent can find out if there are other buyers currently interested in the same property.If there are competing buyers, it nearly always affects your buying strategy. Sometimes you will decide that a particular home is not worth a bidding war. Or, you may decide to more rapidly (even immediately) go to your top bid. If you are in a hot, seller's market, you need to know if there are competing offers and you need to be able to modify your strategy accordingly.

Ask for a Comparative Market Analysis

A comparative market analysis is a review of comparable homes in the neighborhood. It shows you the sale prices of comparable homes, along with asking prices of other homes in the area currently on the market. Your agent can provide this information to you so that you will have the appropriate data to make an offer that is neither too high nor too low.

Investigate the seller's situation

Knowing about the seller's reasons for moving could work to your advantage during negotiations. For instance, a seller who has been transferred to another city may be more motivated to sell rather than someone who is still shopping for a new home. A vacant house, a house that has been on the market for several months and reduced in price, could also be indications of a motivated seller. Typically (but not always) the longer a home is on the market, the more flexible the seller will be on price.

Another factor in determining the seller's price flexibility is to find out when the seller bought the home and what price he paid for it. An agent learns this by searching the county's tax records on the property. Suppose you are interested in two similar homes, both about 23 years old, and both priced at $250,000. By searching the tax records we learn that one of the homes was bought in 1998 and the seller paid $254,000 for it, while the other was bought in 1972 and the seller paid $67,000 for it. Which seller do you think can be more flexible on his price?

Keep personal information to yourself

Conversely, information could be used to your detriment. Information about your mortgage, size of down payment, move-in deadline, or circumstances for buying, could be negotiating factors. While you want your agent to know these details, don't reveal any of this information to the seller.

During negotiations, keep your emotions intact

In certain situations, emotion could cost you money. If you let the seller know how interested you are in the property, this might be seen as a financial opportunity. Recognizing that you are highly motivated, you could an easier target for a higher price. If you absolutely love the home, keep it to yourself. This is a definite advantage of working with a professional agent. Trained to be non-emotional, the buyer's agent can help you get the best price.

Make sure the deal is right before you sign

While you definitely want to move quickly, once you've made the decision to purchase, you don't want to cave in to pressure for a quick close. Someone who is trying to pressure you into buying a home is doing so for a reason. This could involve money, or a multitude of other reasons.

Exercise your negotiating skills

Even if you prefer not to haggle, it's worth it, especially when it's your home and your future. Most people expect to haggle over the price. That's often why the price is set a big higher than the actual selling price. There is always room for negotiation.

Be aware of hidden costs

There is more to a home than simply the mortgage. You will be responsible for other items including mortgage insurance, appraisal fees, legal fees, inspection fees, transfer taxes, title insurance, inspections and other items. Your agent can give you a good idea of the costs associated with buying a home that are beyond the final negotiated price of your home.