With the groundwork laid and the financial backing that comes from being prequalified in place, you can begin the house hunt with confidence. One thing to decide early on is if you would prefer to do this search alone or with the benefits that come from working with a licensed REALTOR.

Working with a REALTOR
The Difference
Before you decide on the real estate professional you will work with on this process, it's good to know the different between a real estate agent and a REALTOR.
A REALTOR is a licensed real estate professional who is a member of the National Association of REALTORS. These professionals operate by a strong code of ethics and constantly educated and knowledgeable about the industry.
You can save a lot of time and frustration during the house hunt if you begin your search working with a licensed REALTOR. Their resources and knowledge will assist you and make the most of your time, money and efforts in this step of the home buying process.

The Advantages
The benefits you'll receive from working with a REALTOR will make a huge difference in your house hunting experience. REALTORS provide
  • A Wealth of Knowledge… You'll be able to trust the information your REALTOR provides you. With the great many resources available to them, REALTORS consistently are trained and educated on the most current issues of the housing industry and are able to share that knowledge with you.
  • A Trusted Resource… A major distinguishing factor of members of the National Association of REALTORS is their dedication to an established code of ethics. This demonstrates and represents their commitment to provide both buyers and sellers the highest level of professional service possible.
  • Expert Advise… With their sound industry knowledge and their high level of integrity, the insight that REALTORS provide can be trusted. Buyers and sellers can both rely heavily on the input a REALTOR can provide.
  • A Professional Network… Being well established in the real estate industry, a REALTOR is connected to hundreds of partners that can provide both buyers and sellers with helpful and vital connections that are needed through the home buying/selling process.

Now is also a good time to come up with a wish list for your home. When you do, consider the following:

Type of Housing
While there are a good number of housing styles out there, each one provides unique features. The type of house you choose will depend greatly on your lifestyle and personal goals.

Single-Family Home
With the purchase of a single-family home, homebuyers acquire ownership of the home as well as the surrounding lot. All maintenance expenses and property taxes would be the homeowner's responsibility. Of all housing choices, this one typically provides the most privacy and flexibility.

Condo
In purchasing a condo, the buyer owns the areas within the walls of the living space but not the surrounding lot of land or building. Typically, a condo is governed by guidelines from a homeowner's association. These associations require monthly dues or annual fees (which are not tax deductible). In turn, the condo owner does not hold sole responsibility for repairs and maintenance to the unit and has access to property management services. Condo units are evaluated individually to determine property taxes (which are the condo owner's responsibility and are tax deductible*).

Co-ops
In a cooperative housing project (co-op), the buyer owns shares of a corporation which owns the building where the apartment is located. In essence, the person rents the living space from the corporation that owns the building but doesn't own it.

As with a condo, there typically is a governing association for co-ops. Through the required monthly or annual dues (not tax deductible*), the resident of the co-op is free from the responsible of repair/maintenance and upkeep of the external areas; property management services are provided.

Unlike a condo, the co-op unit is not individually taxed. The corporation that owns the building is taxed as an organization instead. Then, according to the shares of ownership in the corporation, the amount of taxes is divided among shareholders.

Planned Unit Development
Also called a PUD, a Planned Unit Development is structured so that the buyer not only owns the house and the surrounding lot, but the person also purchases and owns a portion of common space that is shared with others that live in the development. These common areas are maintained through the homeowner's association. As with condos and co-ops, these fees are not tax deductible*

Type of Neighborhood
No how matter how much you love the home you end up buying, you have to remember that it is not isolated from the rest of the world. Is it near areas of the city that are important to you and your family? Is it in the school district you desire for your children? Does the neighborhood appear to be a good fit for you and your family. Type of Housing and Neighborhood With your potential monthly budget in place, you are well equipped to move forward with your housing search. Starting off, you'll find a whole world of housing and neighborhood options available to you.

Choosing a Neighborhood
As you consider your housing choices, also strongly consider your neighborhood options.  The neighborhood you live in is as important as the house itself.

School Ratings
Review school ratings in your desired area (Widget at the bottom of the page)
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Commute
Do you need a quick commute to work? Keep in mind short commutes limit your neighborhood options.

Your Personality
Do you prefer country, suburban or urban living?

Family
Is a certain school district important to you? Do you need to live near other family members?

Outside Involvements
Do you want to live close to your church or temple?  What entertainment venues are nearby?

Future Zoning and Development
Is the park behind your house going to be developed in the future? Does this community have plans to build a large attraction of some sort?

Neighborhood Age
What will the neighborhood look like in 10 years? Are you satisfied with an older neighborhood? Are you content with potential changes your neighborhood could make?

Time of Day
Does the neighborhood feel the same at night as it does during the day? Is weekend traffic heavier than during the weekday?

Extra Costs
Can you afford the county or city taxes or any homeowners association fees?

Homeowners' Associations
What are the homeowners association rules? Are they good for protecting home values?

Neighborhood Investment
Have the homes in this neighborhood held or increased in value?

Talk to the people who live in the neighborhoods in which you are interested. These individuals will know the most about the area and are your potential neighbors. More than anything, you'll want a neighborhood where you feel at home.

“*Please consult with your tax advisor or attorney to discuss your specific situation”

  • Family today and in the future?
Types of Homes:
As discussed earlier, there are several types of homes out there, each one providing different options in terms of space, responsibilities, upkeep and ownership. Consider the differing factors that would make either a single-family home, a condominium, a town home or a co-op the best choice for you.
  • Type of Housing and Neighborhood ·         With your potential monthly budget in place, you are well equipped to move forward with your housing search. Starting off, you'll find a whole world of housing and neighborhood options available to you.
  • Type of Housing ·         While there are a good number of housing styles out there, each one provides unique features. The type of house you choose will depend greatly on your lifestyle and personal goals.
·         Single-Family Home
With the purchase of a single-family home, homebuyers acquire ownership of the home as well as the surrounding lot. All maintenance expenses and property taxes would be the homeowner's responsibility. Of all housing choices, this one typically provides the most privacy and flexibility.

·         Condo
In purchasing a condo, the buyer owns the areas within the walls of the living space but not the surrounding lot of land or building. Typically, a condo is governed by guidelines from a homeowner's association. These associations require monthly dues or annual fees (which are not tax deductible). In turn, the condo owner does not hold sole responsibility for repairs and maintenance to the unit and has access to property management services. Condo units are evaluated individually to determine property taxes (which are the condo owner's responsibility and are tax deductible*).

·         Co-ops
In a cooperative housing project (co-op), the buyer owns shares of a corporation which owns the building where the apartment is located. In essence, the person rents the living space from the corporation that owns the building but doesn't own it.

·         As with a condo, there typically is a governing association for co-ops. Through the required monthly or annual dues (not tax deductible*), the resident of the co-op is free from the responsible of repair/maintenance and upkeep of the external areas; property management services are provided.

·         Unlike a condo, the co-op unit is not individually taxed. The corporation that owns the building is taxed as an organization instead. Then, according to the shares of ownership in the corporation, the amount of taxes is divided among shareholders.

·         Planned Unit Development
Also called a PUD, a Planned Unit Development is structured so that the buyer not only owns the house and the surrounding lot, but the person also purchases and owns a portion of common space that is shared with others that live in the development. These common areas are maintained through the homeowner's association. As with condos and co-ops, these fees are not tax deductible*

Choosing a Neighborhood
As you consider your housing choices, also strongly consider your neighborhood options.  The neighborhood you live in is as important as the house itself.

·         Commute
Do you need a quick commute to work? Keep in mind short commutes limit your neighborhood options.

·         Your Personality
Do you prefer country, suburban or urban living?

·         Family
Is a certain school district important to you? Do you need to live near other family members?

·         Outside Involvements
Do you want to live close to your church or temple?  What entertainment venues are nearby?

·         Future Zoning and Development
Is the park behind your house going to be developed in the future? Does this community have plans to build a large attraction of some sort?

·         Neighborhood Age
What will the neighborhood look like in 10 years? Are you satisfied with an older neighborhood? Are you content with potential changes your neighborhood could make?

·         Time of Day
Does the neighborhood feel the same at night as it does during the day? Is weekend traffic heavier than during the weekday?

·         Extra Costs
Can you afford the county or city taxes or any homeowners association fees?

·         Homeowners' Associations
What are the homeowners association rules? Are they good for protecting home values?

·         Neighborhood Investment
Have the homes in this neighborhood held or increased in value?

·         Talk to the people who live in the neighborhoods in which you are interested. These individuals will know the most about the area and are your potential neighbors. More than anything, you'll want a neighborhood where you feel at home.

·         “*Please consult with your tax advisor or attorney to discuss your specific situation”

  • Features of the Home: What do you need in a home and what do you want in a home? Would you like a one story or two story home? How many bedrooms and bathrooms would you need? Would you like an at home office? What type of backyard would you like? Consider all the different features and prioritize the features of the home you'd like to have.

Next: Chapter 5 - Buying and Closing