1. Establish a budget that is achievable. If you’ve never owned a home before you may not realize some of the expenses that go along with home ownership. You need to budget money each month for your house note, private mortgage insurance, home owner’s insurance, property taxes, and potential repairs and improvements that will need to be made quickly after moving in. You also may be responsible for some utilities that are generally included in the cost of rent when you buy such as water, garbage collection, and sewage services. Many banks will approve buyers for more money than you can realistically afford to repay. You need to be aware of the state of your finances and make sure that you don’t over borrow simply because you can.

2. Inspections. You absolutely need to have a full home inspection before you buy and any offers you make need to be contingent upon the results of the inspection. An inspection is not an absolute guarantee that there will be no problems with the home you are considering but can identify of many potential problems so that you know to adjust your bid on the home accordingly.

3. Appraisal. Most banks won’t lend money on a home until you have a proper appraisal. This generally works in your favor though because an appraisal is designed to insure that you do not pay more than the value of the home. If the home does not appraise at the asking price or the price of your offer you will need to adjust your offer or rethink the offer all together.

4. Estimate for repairs. One other thing you will need before you buy a home is an estimate for the cost of repairs. You can use these estimates to lower the buying price of your home or to secure credit from the seller for the cost of those repairs. Needless to say they can be excellent bargaining tools or they may tip the scales in a manner that makes the house an unfavorable investment. Remember that you need to be able to afford to stay in the house you buy not just get in it.

There are other things you will want to do before you buy but if you take care of these things you are much more likely to have a better overall buying experience and be able to manage to keep your home in a market where so many others are losing the homes in which they have placed many of their dreams.

1) Great Inventory. Anyone looking for a home today will find a tremendous selection - nearly 16,000 properties are listed in the Cincinnati MLS. Whether you’re looking for a starter home, a high-end custom home or something in between, you’ll find just the home you’re looking for.

2) Low Interest Rates. Mortgage rates determine how much you can afford. With the current low rates, you have significantly more buying power. How low are rates today? Those who bought a home in 1963 were paying roughly the same rate as you’ll pay today. The rates won’t stay this low forever. Buying a home now can save you thousands of dollars in interest.

3) Home Ownership Will Always be a Good Investment. Even if you are on the fence for now, that’s OK. There will be plenty of opportunities to buy a home when you’re ready. Home ownership is a vital engine in the American economy. It creates strong communities and builds wealth for families who buy homes. Home ownership won’t go out of style. Home owners are invested in our communities. They are the joiners, fixer-uppers, and watchdogs that make our nation strong. Nine out of 10 consumers consider home ownership to be a sound financial decision. Purchasing a home is a great way to invest your money. In the past 40 years, real estate has delivered the most consistent positive return over any investment. When you are buying a home, you are building equity and adding to your assets.

What are these options?

Credit Repair

This option is often a little more time and effort consuming than most people desperate to move into their first home like to consider but in the long run is the most rewarding. If you make a concentrated effort to repair and/or restore your credit while avoiding further credit problems you should see better results than you will from all other options. The rewards of good credit are many. Not only will you be more likely to qualify for a traditional mortgage but you will also be in a better position to receive an attractive interest rate. The interest rate is what most impacts the final price you will pay for your home and the lower this number is the better for you.

Lease Option

A lease option gives you the opportunity to build up a down payment for your home while living in the home. These arrangements are becoming more common as investors see the benefits of such an arrangement. What this means for you is that you will have a set period of time that is agreed upon in advance (generally no longer than two years) to repair your credit and obtain financing for the home at a specified price. You will live in the house during this time and have various responsibilities for the repair and upkeep of the home according to the contract you both agree on. The benefit of this to you is that a portion of the lease (again it will be an agreed upon amount) you pay each month will be set aside into an escrow fund that will count towards your down payment at the end of the contract period. If you do not manage to get the financing the portion of funds will return to the home owner and you are free to work out an additional contract or seek other options.

Rent to Own

The most attractive to many who are facing financial woes and living with questionable credit is a rent to own situation. These are not often as attractive as they may appear at first glance but do provide benefits if you are willing to pay a hefty price for your slice of the American dream. One thing to keep in mind is that you will often pay either more than the general market value for the home in question or a higher interest rate than is generally charged by lenders. The benefits though are immediate and you can begin working towards home ownership immediately. The terms are generally iron clad though and you must make timely payments every month in order to continue the path to home ownership or face serious consequences and/or setbacks.

It is possible to buy a home for you and your family – even if your credit isn’t the best. It is much better though to sort out your credit issues before purchasing a home because there are invariably new and unexpected expenses that go hand in hand with home ownership.

Kitchen

An updated kitchen can make your house infinitely more attractive to potential buyers. If you are going to invest serious money into your home before selling, this would be the room to make that investment work for you. The return on your investment in kitchen work is going to be greater than any other room in your house provided that you avoid going overboard. You do not have to install top of the line appliances, granite counter tops, or brand new cabinets to improve the value of the kitchen. Sometimes a fresh coat of paint, new hardware, and updated flooring will be more than enough to make an impact.

Bathroom

Another room where you will want to invest a little money and a lot of time is the bathroom. Gone are the days when the bathroom was merely a functional room. Today you need to have a plan for your bathroom. Use light colors and mirrors to make the room appear larger. Install new floorings, and consider resurfacing tubs if they look worn and re grouting tile so that everything looks bright and clean. The important thing about the bathroom is that you want it to look roomy and clean.

Curb Appeal

It really doesn’t matter how gorgeous your kitchen and bathroom is if you can’t get people to pull over and come inside. You absolutely cannot afford to ignore curb appeal in today’s floundering real estate market. People are no longer content to live inside their homes. They want the full benefit of their property and this means the ability to enjoy spending time outdoors. An ugly lawn, cracked sidewalk, overgrown paths, and rain gutters or soffits that are falling apart are not attractive to potential buyers. Even little changes to the general shape of your lawn can have a huge impact on the curb appeal of your home. If you have vinyl siding it is a good idea to consider pressure washing it so that it will look more attractive as well.

There are other changes you can make that will improve the value of your home. A new roof, new furnace or central air unit are good choices but none will impact the resale value or provide the same return on investment that updating kitchens, bathrooms, and curb appeal will have.

Another great way to increase the value of your home is to add a room or bathroom to your home. These types of changes can be quite costly though and may or may not be worth the expense. It’s a gamble if you are interested in selling quickly. If you plan to live in your home for quite a while then the additional bedroom or bathroom might prove to be an outstanding investment in quality of life alone. The most important way to improve the value of a home though is to make improvements that will increase your appreciation and enjoyment of your home.

What are some of these benefits?

Character.

Many of these new communities sacrifice originality for the sake of speed. The goal of these communities it to build homes quickly and this is achieved by offering limited options when it comes to floor plans and home exteriors. Chances are that all the homes in the community are similar if not nearly identical. It is hard to create a home with character when you are surrounded by homes that look the same. There is also something to be said about character growing as homes age. Older homes are often defined as quaint, charming, and atmospheric. New homes that are build in modern housing communities seem far more sterile than those that have seen a few seasons come to pass.

Preserving the Past

Old homes that are purchased and loved by the families of today are often given new life. This means that they aren’t bulldozed for a new housing development or strip mall, and that they are not left to the ravages of time. If you take the time to purchase an old home and love it back to life, the costs may appear high in the beginning but the results are priceless.

They Don’t Make ‘em Like They Used To

Another benefit of buying older homes is that the houses of today are not built to quite the standards that the homes of yesterday were built. If you have the option to check out a house that was built 100 years ago and compare it to the modern homes being built you should notice that the walls are solid and the flooring is meant to stand the tests of time.

Lower Environmental Impact

Purchasing and restoring an existing home is simply better for the environment. We are facing a world that is growing more and more crowded by the hour. New homes are being built in every corner of the world. When you purchase an existing home you are putting it to use and not taking up the space, cutting down the trees, or using the other materials that go into building a new home. Even if you do extensive renovations to the home you are creating a lower environmental impact than if you purchase a new home construction.

There is no perfect decision for everyone or every family. The homes of yesterday generally need updated wiring and plumbing, which brings new costs of their own into the picture. Older homes may also have more maintenance issues than newer homes but they have a sense of charm and history that new homes will be hard pressed to match even 100 years from now.

Nashville, TN

Far more than Music City, Nashville has much to offer families looking for a great place to call home. Not only is there plenty to offer music lovers with free concerts offered regularly there are also plenty of cultural offerings such as museums and festivals to keep the family busy with some wholesome fun and entertainment year round. Education in and around Nashville is top-notch and housing costs are quite reasonable. One thing that Nashville has to offer that seems to be missing in other similarly sized cities is a strong sense of community. If you are looking for a place where your family will feel at home you might want to give Nashville more than a passing glance.

Farmington, MI

Located in closes proximity to the cultural offerings of Detroit and Ann Arbor you will find that Farmington, MI has much to offer the average family. From small town values to a serious community commitment to art, music, and theater, Farmington offers a wholesome and well-rounded upbringing for your children. Perhaps more importantly is that fact that Farmington offers very reasonable property values so that you can afford to live in this fascinating city and still manage to enjoy some of the great entertainment that is at your disposal. It doesn’t hurt that there are often free concerts in the city for families.

Mooresville, NC

Dubbed as “Race City USA,” Mooresville, NC is another great city to raise families. In addition to affordable housing and taxes, there are plenty of modern conveniences that bring in businesses and a prevailing ’small town’ atmosphere that makes this city appealing to families. Don’t think for one second that this means the schools in Mooresville get left behind. There is a major commitment to education in Mooresville. The “Race City USA” nickname came about because so many racing teams are headquartered in Moorseville.

Kansas City, MO

In addition to great schools and community pools Kansas City, MO has a lot to offer the average family. Affordable prices cannot be overlooked in a real estate marketing that seems to be skyrocketing out of control. When you couple that with walking trails, museums, and Midwestern values this is one great city you and your family can call home.

There are many great cities throughout the United States large and small that are great locations for raising a family. Those cities that top the list are generally the very cities that offer affordable housing options, commitment to education, a focus on culture and the arts, as well as plenty of activities to get kids away from their televisions and computers and moving around. Ultimately it is up to you to make the final choice as to which city is best for you and your family. Finances should be a prime consideration, especially the cost of housing. It makes no sense to move somewhere for a better life if you can’t afford to live that life because you are too busy trying to pay your house notes each month.

On the bright side, there are local markets which are doing well.  These markets are mostly costal 24-hour cities with excellent infrastructure. Their downtown office space in these cities should be a good investment. These cities have invested in fixing previously run down areas and have seen prices rocket. Though the market may be soft, the weak dollar keeps the market strong by making these locations affordable to international investors.

Here are some local markets that are doing well.

Seattle – A diverse economy and the presence of corporate heavy weights has lead to this city being a prize area for investment and new building.

Boston – Recovering from the millennium dip, new business has boosted interest in this city. However questions remain about the cities residential rental market.

Washington DC – Government doesn’t stop and this has lead to stability in the Washington market protecting from sharp downturns.

LA – Although Orange County has suffered a downturn as businesses move to cheaper areas, the LA market is still very strong with the nation’s top port.

San Francisco – Resurgence in technology business has lead to prices increasing even as supply increases.

San Diego – With businesses moving out San Diego’s downtown is ripe for new growth opportunities.

Denver - the only non costal city in this list, Denver has managed to extend their prime locations by linking the suburbs to them with a high speed rail link.

Smaller markets include San Jose, Honolulu, Austin, Sacramento, Portland, Salt Lake City, Orlando and Tampa and Nashville.

With recession expected this year and to last at least the next 1 to 2 years and house prices to fall significantly further recovery is not expected anytime soon yet wise investments can still be profitable.

1. Think of your home as a resource ready to be sold.  Distance yourself from your house. Think of it as an asset ready to be sold. This will help with the psychological issues of selling your home. There is a lot of psychology when it comes to selling your house: you have a lot of memories and emotions that are tied to it, and it sometimes will become hard to sell your house. By distancing yourself, you will have an easier time selling your house.

2. Do maintenance on your house. This includes painting, repairing, and generally upgrading your house. There is a reason for this. A shabby house will not sell for any reason in any market. If it does, it will take longer than usual, and at a cheaper price. A well kept home shouts to the seller “Buy Me”.

If the outside is well kept and maintained, it will get potential buyers to come in. However, the same must be done to the inside as well. Take up any ripped carpet, fix anything that needs to be repaired and paint the inside walls and ceiling. This will give it a fresh attitude and make it more attractive to potential buyers. You only get one chance to make a first impression and that first impression will either help you or harm you.

3. Be careful of identity theft.  It is suggested that you remove all diplomas and wedding pictures off your walls and keep all mail out of sight. The less personal stuff left lying around, the better your identity will be protected. It is also suggested to take all your personal items out of your home while it is up for sale.

People are nosy when in a home for sale and sometimes snoop around. This is a good way to get your identity stolen. By taking these tips into consideration, you will actually lessen your chances of getting your identity stolen by someone else.

The tips are by no means all covering. But by taking them into consideration (along with your other ideas), you will have a much better chance and experience of selling a house.

Tara Nelson offers these 4 tips:

1. Refinance: Only if it the house is a perfect fit for you, and you can handle it for the long-haul.

2. Loan Modification: Ask you lender for creative ways to address your loan. Remember, they will have headaches too if you lose your house.

3. Increase Your Income: Rent rooms, get a second job, etc.

4. Short Sale: This is when your lender agrees to discount a loan balance due to your economic hardship.

The big takeaway is to understand your mortgage and to prepare for any surprises/big changes. Don’t just file your contract somewhere and forget about it.

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