Compare Homes

Before you make a decision, you should compare your wants and needs. Also look at the short-term and long-term costs associated with each house you're considering. Are the appliances in good condition? What about the back yard? What will be your commuting costs?

It is important to understand the true costs of the home. The mortgage is the primary cost, but may not be the only cost. You’ll need to factor in homeowners’ association or condo association fees, repairs that will need to be done, long-term maintenance that will be required, and property taxes. Understanding all of the costs associated with owning a home will help you decide on a house that fits your budget.

A good estimate for home maintenance is 1 – 3% of the market value of the home each year. Keep in mind that in an area where housing prices have declined this may be a low estimate.  It is simply a number to help you think about home maintenance. Just because the market value has changed, it doesn’t necessarily mean maintenance costs have changed too.

Other factors that could impact a home maintenance budget include the age and condition of the home when you buy it. The important thing is to remember that home maintenance is an expense that needs to be accounted for when determining your housing budget. It is a good idea to include home maintenance in your monthly budget and save for it each month.

Use written descriptions of each home - from your worksheets or your real estate agent - to help you compare. Revisit your wants vs. needs worksheet. And don't forget to look at your neighborhood wants vs. needs worksheet.

Making An Offer

Once you've found the right home, you'll need to make an educated offer. Knowing a home's real value can help you make a fair offer. A home's value is determined by:

• Sale price history
  You can get the home's past sale prices through county courthouses and recorder's offices, many of which have this public information also available online. You can also check with your real estate agent. See if the value has risen or fallen over time.

• Home characteristics
  The number of bedrooms and bathrooms, square footage, and other characteristics greatly affect the value. In many cases, the seller and their agent provide this information to all prospective buyers. You can also get this information from the tax assessor's office.

• Similar home prices
  Ask your real estate agent for sale prices of comparable homes in the same neighborhood.