But seriously, get a realtor of your own. They'll deal with the owner's realtor. Never never ever have one realtor handling everything for both sides. Never ever buy directly from the buyer without a realtor on your end. They do this shit for a living.
Wait a year or two because the market nationwide is seriously over-valued. Give it time an wait for prices to come back down a bit. Next year we'll see over a trillion dollars of adjustable rate mortgages that will be resetting to a much higher interest rate and foreclosures are going to continue going through the roof so I would look at possibly picking up a nice foreclosed house late next year/early '08 at a nice discount. Spend the next year building up a down payment and then start looking.
Buy something in a rural area, but within an hour of a good city that you like. You can buy a house for $50k north of Santa Fe... I just did. Then buy a house in the city later. Don't get a mortgage that you can't afford or that will put you at risk later. Enjoy looking, but promise yourself not to buy on impulse. Get a good lawyer -- there are actually some out there.
I would start by crunching the numbers. Figure out how much you can afford to spend each month (mortgage, insurance, property tax). Keep in mind that the interest on your loan is a tax deduction so you will have a little more to spend then you might realize (a mortgage broker can give you a ballpark figure). Then shop around for lenders. See how much they will lend you and what type of loan best suits you. Make sure you ask them about state sponsored first time buyers incentives! When I bought my first home I got $7500 from the state towards a down payment. Once you know where your price range is you can start looking. Realtor.com is an easy place to start. Once you've got a handle on whats out there find yourself a reputable realtor and go from there. I think this would be a really good move on your part. When I bought my first condo (in Iowa) my total costs per month were about $650 and the place next door was renting for $750. GOOD LUCK
The way I approached it was to drive around and look at neighborhoods I thought I might like. You'll be better off choosing a neighborhood first, before you try to pick out a house. Spend a little time walking around the neighborhood if you can, just to get a feel for what it's like. Decide on which features matter most to you, but remember that the less flexible you are, the harder it will be to find a good deal. I got an older house in an historic neighborhood and I'm glad I did, but keep in mind that unless the house is very new, repairs and maintenance will almost always be more extensive and time-consuming than you think at first glance. Try to spend considerably less than the maximum you think you can afford. The market is high right now but it has come down some recently. The elevated market is another good reason to be conservative in terms of the percentage of your income you commit to a house payment. If you can find something you like that's well within your price range in a neighborhood that feels good to you, I wouldn't wait just on the hope that prices will fall further.
Yeah you need to find an agent. Just make sure it is someone you are comfortable around that isn't going to try and push something on just for the sale. My agent was really awesome. She was never was pushy or anything. She has sold and helped purchase homes for the majority of my family. So I would say the most important thing to start is to find someone you trust.
When you figure out what you can afford . . don't forget to take into consideration real estate taxes, insurance, utilities, and occassional maintenance items. Also, you'll want to leave room for occassional purchases of furnature, appliances, etc. Also, if you're going to commute to work, what is the cost of gas, tires, maitenance, etc. I guess what I'm saying here, is be a little conservative on the front end, and leave yourself some room for the what-ifs.
When you decide upon an area . . . try to find the cheapest house in that neighborhood. As you improve your home over time, you will benefit from a greater degree of appreciation, than your neighbors will. Never buy the most expensive house in a neighborhood.
Stay away from variable rates and gimmicky loans. Get a fixed rate mortgage, with a 25 or 30 year amortization. Your Principal and Interest payment will be fixed for the entire time you live in that home. So as your income goes up over time, your cash flow gets better and better.
Absolutely use a Realtor. They are obligated to disclose everything they know about the property. The seller may not tell you everything.
Ask about what is going on in the area. Are values going up or down? Are there any significant developments, either approved or under consideration nearby? Road expansions, highways, railroad, shopping centers, etc.?
Have there been any environmental problems in the area? Dumpsites? Industrial waste?
How about Crime? If neighbors have iron bars on the windows, you may wish to ask why!
Ask about the neighbors early on . . lots of barking dogs, screaming kids, or loud music, can ruin your peaceful enjoyment of your home. Do neighbors have miscellaneous vehicles parked in their yards? What are the local ordinances on unregistered vehicles, or commercial vehicles?
Visit the local planning department at City Hall. Ask them to tell you about the town, and specifically the neighborhood. Lots of information is free for the asking.
