You’ve searched and searched, finding nothing that suits, when suddenly you’ve found not one, but two homes that would be perfect. What to do? First, remember that your housing market may demand that you come to a decision quickly. You don’t want your dream home to get away. Be prepared to make a prompt, reasonable decision using your head as well as your heart.

Make a list to help weigh the pros and cons of each property.  Start with the basics:

• Size
• Condition
• Age
• Schools
• Distance to your workplace
• Transportation options
• Homeowners association dues

Take a look at the surrounding neighborhood. Is it well maintained and safe? Look to see if there are many other homes for sale and check on the area’s crime statistics.

How long have each of your two favorite houses been listed? A seller is more likely to accept a lower offer if the home has been on the market a long time. If the price between the two homes is significantly different, the cost might be a deciding factor. Committing to a 15 or 30-year mortgage means your standard of living may be better starting with the lower price.

If you have children, you are likely interested in having other families living nearby, proximity to playgrounds and parks, as well as good schools. Even if you don’t have children, note that homes near quality schools will hold their value better than those near poor-performing schools.

Finally, which of your two candidates has the most features from the wishlist you had in mind when you started your search? A gourmet kitchen, space for gardens, room for entertaining, a home office, walk-in closets – what do you want the most and which house hits more of your hot buttons?

This list will likely nudge one home to the top. Throughout your deliberation, be sure to use your real estate agent’s skills to help guide you through the process. Your agent has great knowledge about market data and the investment potential of the properties. He or she will have important information on the situation of each of the homes’ sellers. Your agent will be glad to take you through the houses more than once or twice so you feel comfortable with your decision. Depend on your agent to take emotion out of the equation and help you look at the facts about each property.

Ultimately, you don’t want to spend too much time deliberating between the two homes or they may be lost to other buyers. If all else fails, go with your gut. If you are deciding between two dream homes, you can’t go wrong.

An inspection of the physical condition of a house should be included as a condition of closing the sale. Your real estate agent will make arrangements for a professional inspector to look for defects in the roof, plumbing, electrical, heating and cooling systems, paint, windows, doors, and foundation. The inspector will also check for dry rot, mold and pest infestations, and should check outside for any problems with grading, drainage or retaining walls. You might want to arrange for inspections for mold, asbestos, lead or radon. Depending on the property, you may want to ask for testing well water, oil tanks or septic systems. Most inspectors are qualified to conduct all of these tests, although some may require additional fees.

The seller is required to provide a disclosure sheet about any issues of which they are aware. This is just a starting point for the inspector, however, because there are likely problems the sellers either don’t know exist or have actually forgotten about.

It is most common for buyers to have the inspection done after they have made an offer and the sale of the house is contingent on the buyer’s approval of the results of the inspections and resulting repairs. Keep in mind that all objectionable inspection issues must be “repairs” and not “improvements”. A repair may be a broken window, for example, and an improvement would be new counter tops.

The inspection usually takes two or three hours and will usually cost between $200 to $500 depending on the size, age, location and type of home. Buyers are encouraged to be present during the inspection so they can ask questions, learn about maintenance of the property and get a sense of which problems are serious and which are fairly minor.

The inspector will provide a written report of all findings which will be presented to both the buyers and sellers. If the report shows no major problems, you can move forward with the purchase feeling confident that you are getting what you are paying for. If there are big issues on the report, like major termite damage or an antiquated electrical panel, you can negotiate with the sellers to have them pay for repairs or lower the purchase price, or you can back out of the deal completely.

A good first step to buying a new home is to prioritize the amenities you really need the most. Be prepared to compromise a bit. Dreams of marble counter tops, gleaming hardwood floors and a pool in the backyard are great, but be careful to prioritize your real NEEDS over the WANTS. Separating the two may be difficult. Your basic needs include a roof and walls, heat and, possibly, air conditioning depending on the local climate. But you might tell your real estate agent that you want a four-bedroom, two-story with a beautiful fireplace and a fenced yard on a cul-de-sac. Before you get completely carried away, try to define what you need the most in your next home.

Make a List

Make two columns, one for wants and one for needs. Needs should include items such as price range, school requirements, location, number of bedrooms and bathrooms, size of the garage, and how much fixer-upper repair you are willing to do yourself. Wants could include more nonessentials, like a recently remodeled kitchen or bathrooms, hot tub, home style, new windows, a large deck or professional landscaping.

How Large or Small?

How much space do you need? Will your family be growing? Do you want to downsize? Do you need a lot of storage space? Do you want a three-car garage? Think about the amount of square feet you want, but keep the number flexible as you begin your home search. Consider how you want your family to fit in your new home.

Future Plans

How long do you intend to live in the new home? If it is only for a short term, its location, value and neighborhood will be important for the future resale. If you think you will live there longer than five years, you will have more time for remodeling or expansion. Will you need a large lot for a new addition?

Once you have completed your list, prioritize everything with the needs at the top followed by the wants. Share it with your agent so he/she can help you find properties available in your price range that best fill your desires. It’s good to have this work done before you actually start looking to make sure you buy the right house for your family’s needs.

The emotional and financial stakes are high when purchasing a home, but rewards can be, too. There are intangibles that are tough to measure, such as stability and pride of ownership. However, there are other substantial benefits that are important to consider. When considering purchasing a home, be sure to look for a house that can grow with your family. The financial benefits of home ownership increase over time.

• You don’t own anything when you pay rent. However, every mortgage payment increases your degree of ownership in your home and your equity grows. Home ownership requires buyers to save for a down payment and then save each month by paying down a portion of the mortgage principal. To equal this savings, renters would have to invest an amount equal to a down payment plus the monthly savings. Most renters don’t do that.
• Your costs tend to be more predictable and more stable than renting if they are based on a fixed-rate mortgage.
• You can deduct mortgage interest and property taxes.
• In the long term, buying is cheaper than renting because, over time, the interest portion of your mortgage will eventually be smaller than rent you would have been paying. So, instead of paying off your landlord’s building, you are paying off your own home.
• You can borrow against your equity to pay for major purchases, such as college tuition or remodelling.
• When you sell your home you may qualify for capital gains exclusion depending on your total financial picture, it’s best to reach out to your accountant for full details.
• Your home is indeed your castle to do with as you like. Paint the walls any color you choose and bang nail holes where ever you wish.
• You have greater privacy without any requirements imposed by a landlord.

Buying a home may be the largest single purchase of your life and the process can be daunting. Organize your plans and expectations in the following order to simplify and smooth your way into home ownership.

Set Your Priorities
Whether you are a first timer or a repeat homebuyer, this is an emotional and financial decision. The best negotiators are the most informed. What can you afford? What is your credit rating? Do you have a down payment? Do you know the neighborhoods you prefer? What are the recent sold prices of the homes there?

Hire a Real Estate Agent
The process isn’t easy, and you will be glad to have experienced, professional advice to help your find properties, as well as guide you through with the maze of forms, financing, inspection and negotiating. Find an agent who you like and who knows the community well.

Arrange Financing
Most buyers need to finance the home purchase. Consult with a lender to find out the different types of mortgages and how you quality. Find out how much you can afford to borrow and get pre-approved. This is a crucial step before beginning your home search.

House Hunting
Looking at properties can be fun, frustrating and challenging. Where to live? What style of home? Old or new? Ready-to-go or a fixer-upper? Searching websites will bring up thousands of homes for sale. As you educate yourself on the market, your agent will help you narrow your priorities and make an informed decision about your final choices.

Make an Offer
This is another area where your agent is invaluable in negotiating for you. Decide whether or not you will go with the asking price. The offer will include conditions, or contingencies, necessary for the sale. These are items that must be satisfied within a set time frame for the sale to go through. A home inspection also should be scheduled.

Close the Deal
Closing or settlement or escrow are all terms for finalizing the sales transaction. The buyer and seller sign numerous documents and the closing agent disburses the money. The title company is responsible for having the deed and other documents recorded at the county office.

The Keys, Please
The home is yours. Your contract states when you can take possession of your new home. Ask your agent if you will get the keys at closing or after the deed is recorded. Along with the keys, you should receive garage door openers and security alarm codes if those are included. Then you are ready for the moving van, unpacking boxes and hanging pictures!