Buying your first home is probably the most important decision you will ever make. Do you know what to look for? What questions must be answered before making a purchase offer? What your agent doesn’t have to tell you can make your dream of owning your own home a nightmare. Do you know who your agent really works for?

First of all, I would like to say: never sign any legal document without reading it carefully and having a full understanding of the terms and conditions of said contract. Never sign documents with blank fields. All fields must be completed or cleared as N/A (not applicable) before signing, to avoid document tampering. Always get a copy [right away] of each and every one of the documents that imply his signature. You are entitled to this by law.

Most homebuyers do well to explore financing options before looking for a home. Prequalifying with a reputable lender will keep you from settling on a home you can’t afford. This will tell you the price range of homes to consider and what you can afford. Remember that not all lenders are the same, so shop around to get the best rate and terms.

here are some [not all] questions that every buyer should have answered and other important questions to consider before making a purchase offer:

Is the title clear and clean? A title insurance policy** should always be a prerequisite for purchasing any real estate. This insures you against any defects with the title; and that you are free from liens and judgments, or the policy issuer will correct any defects at your expense, if any arise.

Is there any record of previous damage to the structure? Most agents will claim ignorance of any prior knowledge. They will usually tell the truth, but what you may not know: They make sure not to explore the topic of past damage, or they go out of their way to avoid gaining knowledge about past damage. Disclosure laws require them to give you any information they possess or are aware of that they don’t want to know about and discourage the seller from sharing information of a negative nature.

Termite Bonus** – I would never recommend overlooking a termite bond, regardless of the termite inspection report of ‘non-visual’ damage. Factoring in the costs of future repairs from termite damage, a termite bond is worth its weight in gold. I recommend you buy one.

Who the agent works for: Federal law requires that you be told about your options when dealing with an agent, agency, or brokerage firm. Don’t rush into deciding and signing any agreement until you have all your questions answered and fully understand what each option means, legally. Do they work exclusively for you, the buyer? Or do you share representation with the Seller? Or do they exclusively represent the Seller?

Is there a home warranty** for the buyer? Know what the warranty does and does not cover. Some policies may be cheaper, but offer less coverage and have various exclusions and conditions.

Make sure you know the construction date and history of the property you are considering. Your local records department or records office will have this information. This can affect many things including, but not limited to, homeowners insurance purchases, flood insurance rates, taxes, easements and liens, use restrictions, zoning variances, and whether the builder or developer is reputable or still in business.

Does the property comply with current building standards and codes? Have you conducted an independent inspection of the home prior to the [and conditional to] Making that sale is money well spent. This can literally save you thousands of dollars. Hire a professional only after verifying their good standing with your local Better Business Bureau. Do not depend on the listing agent or real estate agent for this task. Recommendations should be considered only after verification of experience.

Listed or Asking Price**: Never offer the full sales price in your initial purchase offer. Depending on the particular property, I have offered less than fifty percent of the sale price. There are numerous considerations to take into account when negotiating a real estate deal. Make sure your “Good Faith Estimate” includes all elements related to your proposed individual purchase offer.

Ask questions and get accurate answers about the demographics of the neighborhood and the surrounding area: Is it a high crime area? If so, what types of crimes are prominent. If you have young children, you will want to know if there are any registered sex offenders in the neighborhood and surrounding areas.

Other considerations to keep in mind:

*Is there a problem with noise from trains, planes or heavy traffic? *Have you questioned the neighbors who adjoin the property? *Is the school district good and what are the policies of those schools? * Is the location central to your particular needs? Convenient shopping and business needs? *What about the response time of local police and emergency medical services?

NOTE: Items with double ** are negotiable closing costs between seller and buyer.

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