Buy a less expensive house in the most expensive neighborhood you can afford. If you do, you multiply your chances for making money later on when you resell.

Don’t Give Up As you go from house to house, remember that a big factor is exhaustion. It’s not just being physically tired. It’s the fact that after a while, all the houses start to look the same. Therefore it’s a good idea to keep in mind the following:

How to Avoid Buyer’s Burnout Always take a notepad and map with you. Mark the location of the house on the map and write down special features on the pad. If the owner offers you a fact sheet, save it even if you don’t seem interested in the house at the time. Later on, you may think about it and realize the home had more appeal than you at first realized. Never look at more than three or four houses in any one session. After that, you’re no longer being careful. You’re just running through, not paying attention to the details that could make you fall in love with a place. If you need to see a lot of houses, take big breaks. See three in the morning, then stop and have lunch. See three more, then stop and do something else. See three more in the early evening. Nine houses in one day is the absolute capacity of almost any prospective buyer. Even with nine, the features of one will begin to blend in with the features of another. Try to get a Polaroid or digital camera and snap a picture of the houses that appeal to you. A picture is worth 1000 words. You’ll instantly remember the features of a house, once you see a picture of the outside or some room inside. Frequently, agents or owners will provide you with photocopied pictures. Sketch floor plans that you like on your notepad. It helps to remember and is also a good means of comparing one house with another.

Don’t be afraid to ask questions. Many buyers worry that they’ll be thought foolish if they ask about drainpipes or washrooms or taxes or something they think everyone else knows about. There are no foolish questions, only foolish buyers who don’t ask questions. A seemingly simple question may open up a whole line of concern that you weren’t aware of.

TIP ASK, ASK, ASK! It’s far better to ask about the problems of a house before you buy than to be stuck with them after you own it.

How Do I Know What the House is Worth? Get a CMA Market value in real estate is determined by comparing what’s for sale with what’s sold. If a house in a tract sold for $250,000 a month ago and the nearly identical house next door is now for sale, it’s a pretty good guess that it, too, is worth at least $250,000. Once you find a house you are interested in, ask to see a CMA or “Comparable Market Analysis.” Any good real estate agent can very quickly prepare a list of all the similar homes that have sold over the past six months to a year. Check them out. Subtract for features your subject house lacks. Add for extras that your subject house has. For example, if the house that sold for $250,000 didn’t have a pool and the house you are interested in does, add value for the pool. (Pools add to the price, but not much it may cost $50,000 to put a pool in, but it may only add $10,000 to the home’s price at sale time.) To learn how much the pool adds to your subject home, try to find other sales of similar homes with pools.

Traps of CMAs (Comparative Market Analyses)   No two homes are ever exactly the same (add or subtract for floor plan, additions, size).   No two lots (sites) are ever located exactly the same (add or subtract for view, size, quiet location).

No two homes are ever in exactly the same condition (add or subtract for wear and tear, renovation, upkeep). You can also find comparables online. Many Web sites, usually for a small fee, can give you comparables in most neighborhoods. It’s a quick and easy way to get good information. See Online Resources at the end of this article.

Negotiate and Get a Better Deal Everyone’s heard that the most important thing when buying a home is paying attention to location. While location certainly is important in getting a good deal, even more so is the ability to negotiate. In this article we’re going to consider, “Negotiate, Negotiate, Negotiate!”

Everything is negotiable when buying a house. The trouble is that most buyers either don’t believe it or don’t like to do it.

What’s Negotiable When You Buy a Home Here’s a partial list of what’s negotiable when you buy a house:   Price   Financing   Closing costs (except where specified by law)   Occupancy (when you get the key and can move in)   Painting (will the seller repaint a portion of or the entire house?)   Repairs (will the seller repair the roof, plumbing, windows, and so on, and what kind and quality of repairs will be made?)

Yard (will the seller remove unwanted trees or bushes, or put in desired landscaping?)

Fixtures (which lights, fans, and appliances stay and which go?)   Wall coverings (do the drapes stay or go?)   Doghouse (does it go or stay?)   Dog or cat (does it stay?)   Furniture (will the seller throw in certain pieces?)   Closing costs (will the seller pay yours?)   And everything else! Everything, with only rare exceptions, is up for grabs when you buy a home. How much you grab for yourself and how much the seller grabs depends on how well you negotiate. Of course, that’s the rub. Many of us feel at a loss as negotiators. For many people, in the back of their minds, they know they’re going to come out second best. So they just don’t bother. That’s the trap. That’s a shame because negotiation gives the buyer incredible power in making a favorable transaction. Of course, it can also place him or her in a position of immense weakness. The fact is that how you negotiate determines whether you get the home of your dreams or whether those dreams end up being a nightmare.

Do You Negotiate from

Weakness? I once had a friend who had a strong dislike for traveling in Mexico, even though her business obligations required that she routinely go to such places. “Why?” I asked her on one occasion. “The people are very friendly. The scenery in many areas is spectacular. And the currency exchange rate for Americans is often favorable. So what don’t you like about it?” She glowered at me for a moment, then replied, “In many areas, particularly rural ones, you seldom know what the price of anything is.” She waited for that to sink in, then continued, “You want to buy a pair of shoes. The price written on them is one thing. But you just know you should be able to get them for less, maybe half of that price if you haggle.

“But the moment you try to bargain, the seller gets upset and starts protesting, sometimes even accusing you of trying to steal food from the mouths of his children. “He says you’re trying to cheat him and demands the full price. I get embarrassed. I end up paying full price, sometimes even more just to get away! Why don’t they just put the real price out there to begin with?” I nodded understandingly and said, “But don’t you see? The negotiation for the price is a kind of ritual. It’s anticipated that you’ll offer less and pay less than the asking price. The seller’s insults and threats are just a way of doing business, trying to get you to pay more. There’s nothing personal in it. Most people enjoy the negotiation.” She shook her head, then said, “I guess I’m just no good at negotiating.” I indicated that when I’d once visited Mexico, in a marketplace I’d seen a buyer and seller haggle for nearly half an hour over the price of some small trinket, hurling accusations of thievery and insults relating to family origin. All the hostility was immediately forgotten the moment the sale was concluded, at which time both buyer and seller embraced each other as though they were bosom buddies. “Negotiation for price and even terms of sale is the accepted practice throughout most of the world. It is an ancient and honored tradition.” My friend scowled at me. “It’s not a tradition in the United States. When I go into a department store, I know what the price is. There are no shenanigans, no arguing, no negotiations. If a pair of shoes in Macy’s is listed at $65, that’s the price no ifs, ands, or buts!” I nodded and thought about the last time I was in Macy’s and bought a sweater. The full market price was $60. But, it was half off because of a sale. And because I was there early on a Saturday I could take another 25 percent off. And if I opened a credit card, it was another 10 percent off . . . It was the end of our conversation. My friend was absolutely convinced that negotiating was the bane of doing business. How wrong she was. Negotiation is alive and well everywhere, including in the United States. No, you won’t likely recognize it openly when you go to most stores, although it is reflected in sales and cut-rate prices. On the other hand, it is most clearly seen when you buy high-ticket items, like a car, or rare coins or paintings, or . . . real estate. Negotiation for price or terms of sale always has been and probably always will be the rule in any capitalist society. It’s how true market price is discovered.