Editor’s Note: This is the second in a two-part series.  Read part one by clicking here.

Look for a house with universally popular selling points. If you’re impressed, the next buyer down the line is bound to be, too. For example, a roomy, modern east-to-clean kitchen is the best selling point a home can have. A house with only one bathroom is less desirable than a house with two or more. Many buyers expect at least three bedrooms, with a master bedroom that offers a feeling of privacy. Lots of storage space and closets, especially walk-in closets, will be a real selling point. Family rooms or “great rooms” also are desirable. On closer examination, a house that looks like a bargain may lack some of these key features. Ask your Realtor to help you evaluate the difference in value for the lack of one or more of these features.

Location, Location, Location
Don’t forget the old adage: location, location, location. Unless you’re looking for a fixer-upper, the house should be in a condition that is comparable to other homes in the neighborhood. Avoid buying the biggest or fanciest home on the block. Consider the amount of traffic or noise. Homes located in a quiet area away from a busy street will command a higher price. Make sure the schools in your district have a reputation for quality education and safety. Nearby supermarkets, gas stations, restaurants and theaters also will make a location more desirable.

Good community facilities also add appeal; pools, athletic fields, community centers, libraries and hospitals all add to a neighborhood’s value and desirability. Transportation needs also should be considered. Is local public transit available? How long are typical commutes to places of current and potential employment? Are there several alternate routes? All of these can affect a home’s pricing.

Looking Past the Purchase
Consider the cost of living in a home. It’s important to consider not only purchase price but also the monthly cost of living in a home. Estimate your utility and maintenance costs. For example, will the house need to be painted on a regular basis and will you need to spend money maintaining a swimming pool? Ask your lender or agent about the property tax rate and whether increases are anticipated. Will you have to pay special assessments for a homeowner’s association? Consider the point in the life cycle of major household systems, such as the furnace, air conditioning, roof and kitchen appliances.

Another very important consideration is how long you plan to live in the home. If you plan a relatively short stay before reselling it, then do not tackle a property that is at the top of the market or one that stretches your monthly budget. If you end up having to sell within a year or two of buying, you will be likely to lose money on the transaction, when closing costs, loan fees and commissions are taken into account. A home that you intend to keep for 5 years or more will offer you more flexibility if the price is affordable for you.

The real estate market will always have cycles alternating between a seller’s and a buyer’s market, but over a 5-year period, you are almost certain to gain appreciation. Real estate is a great investment—especially in today’s market. Just buy smart, and to do that you must educate yourself with the help of professionals who are keeping track of the current market and expected trends.

Take the Smart Risk
You can find a bargain! Your first step should be to seek out a reputable lender and a knowledgeable real estate agent with experience in the market areas where you wish to purchase a home. Your lender can get you prequalified for a loan in an amount that is appropriate for you. A seller faced with otherwise identical offers from two prospective buyers will find the offer from a prequalified or even pre-approved buyer much more attractive. Your agent can help you find a knowledgeable lender and can help you to locate those properties that truly are “bargains” and find the home that most closely matches your desires and needs. Remember too that no home is a bargain if you will not be happy there.

Editor’s Note: This is the second in a two-part series.  Read part one by clicking here.