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Are you thinking of investing in a home? There are some practical considerations you might want to take a look at so that you get the most value from your personal real estate purchase.

In the excitement of buying property, it is easy to get caught up in appearances. Envisioning where the furniture will go, how you will decorate the home, and dreaming about the physical appearance of your new space are exiting. However, if you do not consider you and your family's future needs, the sparkling, beautiful house that you are thinking about buying may turn into a source of misery a few years into the future.

Okay, maybe they're not as exciting as what the house looks like, but here are some practical guidelines that can pay off down the road.

FACTOR 1 -- SIZE.

Having kids around requires high maintenance. You have extra rooms to heat, space to clean, bathrooms to keep in working order, etc. But if the kids will be gone in just a couple of years, do you really want all that extra maintenance work? Conversely, if you are a young family and are expecting more children, you certainly need to consider the extra space you may need. You will want enough room so that you have privacy, your kids have their own special "space," and there is plenty of play room. Alternatively, you might consider a home where add-ons can be made relatively easily and do not require approval of a homeowners association. Generally, zoning regulations will come into play when you decide to build additions to your home, so check them out. If you have resolved to remain single, you certainly have a lot more leeway when considering your future needs. But remember this: Never say never! Someone may come along who knocks you off your socks and you end up having a family after all!

FACTOR 2 -- THE AREA AND NEIGHBORHOOD

A critical issue is the neighborhood you are thinking about buying into. It does not matter whether you're about to retire, start a family or remain single -- the neighborhood is a huge issue. You need to be able to feel safe in your new home. The last thing you want is to worry about the safety of your loved ones or have to worry about your home being broken into. Look for graffiti, garbage in the lawns or streets, and whether or not pleasant, family-types of people are strolling along the streets in the morning or afternoon. A neighborhood that is going downhill is also undesirable. Without being scientific about it, you can generally tell where the neighborhood is headed by the condition and upkeep of the homes and the models of cars that are parked in the driveways of those homes. Watch the crime reports in your local paper.

Another tip is to scout out the neighborhood during off hours, without your Realtor present. I wish I knew about this tip years ago, quite frankly. When I bought my first home, I had checked out the neighborhood during daylight with my Realtor and it was in great condition -- booming, as a matter of fact. There were historic brick houses that younger people were buying and renovating. The homes in the neighborhood shimmered with pride of ownership. During business hours, people were at work and the neighborhood was quiet. I bought the house and started my own renovations only to discover that I could not sleep because one of the neighbors had dogs that barked and howled the minute the sun set until daybreak, making it impossible to get any rest! I ended up selling that home simply because of the misery those dogs created. No matter what I did -- calling the City, using earplugs, taking sleeping pills, you name it -- the incessant howling of the dogs kept me awake night after night. From that point forward, for all my other pre-sales evaluations, I have driven to the neighborhood after dark and parked to observe the sounds and activities around the house. Choose a couple of weeknights and weekend evenings and park by the house you're thinking about buying after sunset. It only takes a few minutes of observation and you will not upset your potential neighbors if you use discretion. You might observe loud kids, barking dogs or other nuisances that you would not otherwise know about until you've moved in. This is an invaluable tip.

Unless you are buying and selling real estate for a living, your real estate purchase is generally a 30-year financial commitment. Make the most of it!

FACTOR 3 -- PROPERTY VALUES.

What changes your purchase from "somewhere to live" into an investment is the property value. You want something that will gradually increase in value over time, not lose its value becasue of a declining neighborhood or other factors. You can find out what is happening to property values by checking out the public assessor records. Most counties have this information online and it is free. Type in your street address and surrounding street addresses and the assessment records that come up should have a sales history. There are many other online sources that provide this information. They show sales information for the past couple of years for free and, for a small fee, will provide more indepth reports if you want to know more. The point is that if the area you are considering has experienced a couple of years of declining property values, you may want to find out the reason for the decline before making your real estate investment and moving your family in that area. The decline could be a short-lived glitch in the real estate market, or it could be something serious that affects the value of your home such as increased crime, a plunge in the job market, or environmental conditions or polution that is causing cancers and other illnesses.

FACTOR 4 -- LOCAL SCHOOLS.

If you have children or are planning on having them, check out the schools in the area and their reputation. Most school districts around the country are determined by the neighborhood in which you live. You can even visit the schools and find out first hand what they are like.

FACTOR 5 -- ZONING REGULATIONS; HOMEOWNERS ASSOCIATIONS.

If you plan on operating your business from home, you might want to check the zoning regulations before buying. For example, if you repair small engines from your home, the local zoning ordinances may prohibit you from doing so. If the home you are considering is part of a homeowners association and there are restrictive covenants, be sure to read those restrictive covenants (commonly called CC&Ns). The restrictive covenants might ban onsite parking of RVs or boats. There may be restrictions on the height of border fences or shrubbery. Some dictate the what colors you can or cannot use on the exterior of your house. Because of zoning or other covenants, there might also be easements around the property that you may not be aware of at first glance. You can find out if there are easements by reading the preclosing title work, checking with your country recorder, or reading your real estate survey.

FACTOR 6 -- THE COST.

Cost is going to be the first and most obvious consideration for any home buyer. Instead of going for a lot of flash and dazzle, you might want to consider buying something more affordable that will appreciate over time. You do not want to be in a situation where your mortgage payment is so high that you are barely making it each month and cannot save any money. Sometimes unexpected illnesses or economic conditions affect your level of income, and if you are barely making it at 100% of your income, chances are that you will not be able to afford the house if your income is reduced by as little as 10%. Also, there may be repairs that need to be made. If every dime you have is going toward the mortgage, you will need to borrow even more money to make repairs if you do not have a nest egg set aside.

CONCLUSION

There are many other practical considerations that should be taken into account. Among them are the condition of the home, whether or not it's in a flood plain, the number of similar families in the area, and the closeness of the area to other conveniences such as stores, work, and entertainment. If you are practical and level-headed in the home buying process, you will be rewarded with years of enjoyable living and an investment that appreciates over time.