Series: 20 Best-Kept Real Estate Secrets, Part IV

Now that the summer has wound down, it's time to get back to the grindstone and finish off our series with the final five tips for buyers.  Get those pencils up & ready!

6.  Avoid Sleeper Costs
Owning a home comes with a price, and most buyers are unaware of the financial impact a home can have on a budget.  Besides the obvious fix-it issues and DIY projects, things outside of your home can add up, also.  When purchasing, ask your Realtor if the area you are looking in is due for a tax increase.  Are there any special tax assessments you should be aware of?  One of the best exercises I suggest for renters is to live with your "future amount" even while renting.  For instance, let's say your rent is $1,100 per month, but the homes you are looking to purchase sit in the range of a $1,600 monthly mortgage payment - save the extra $500 per month and see how well you fare.  You might even - gasp - save that extra $500 per month for a downpayment!

7.  Don't Get Emotionally Attached
To all you right-brain thinkers out there, this one's a doozy.  As a Realtor, you see it all the time - a young couple walks into a beautifully staged home.  One loves it ("the Lover"), one hesitates ("the Logic").  Enter the guilt trip from the Lover as to why the Logic needs to even think about it, start an argument, make the Realtor uncomfortable, and everybody walks out mad.  Sound too familiar?  Unfortunately for the Lover, buying on emotions will break your heart in the end.  All buyers need to understand that there is a HUGE difference between emotions and instincts - you're buying a home, not dating it.  If you're going to be attracted to anything, get attracted to the logistics of the home...not the pretty outfit it had on the first night you met.

8.  Let's Get Physical
And, no, I don't mean the Olivia Newton-John song.  I mean give your prospective home a physical.  ALWAYS hire an inspector to go beyond skin deep - they are your "i" dotter and your "t" crosser.  All home inspectors now must be licensed in Illinois, so take advantage of that - they will be the ones that can tell you whether the homeowner did a band-aid job or truly fixed an issue.  It generally costs less than $200, but can be worth thousands of headaches solved.

9.  Research Before Bidding
Your Realtor should know there is a secret science to bidding.  There are two major things your opening bid should be based on: 1) what you can afford, and 2) what you truly believe the property is worth.  Is it an aggressive price?  Is your offer within 10% of what other homes sold for in that neighborhood?  Your bidding should depend on what the market is doing, and your Realtor should be the expert.  Here's an added tip - every seller respects a bid that's an oddball number (like $359,367) and takes it more serious...it shows you've done your homework.

10.  Stalk Your Neighbors...
...in a good way.  When seeing a home during an Open House, everything is perfect.  But that is during a quiet weekend.  Drive through the neighborhood during the week to get a real feel for it.  In my opinion, you should see a prospective home at least once in the morning, around noon, and at night to really learn the neighborhood.  Look for amenities - does the area have sufficient street lights?  If you have a young family, is there school bus stopping nearby?  What about public transportation?  Even if you don't have a family, buying a home in the right school district could affect your value up to 20%.  It's definitely something worth considering.