Condos and houses have their advantages and disadvantages. Use our chart to help compare your options.

Be it in New York, Atlanta or Miami, the condominium market is thriving, with modern towers and low mortgage rates luring would-be home buyers with the possibility of building equity at rent-like prices.

Should you join the condo club or go for a more traditional home? Consider your lifestyle and weigh the pros and cons of each before deciding which to buy.

Condominiums

Houses

Of course, regardless of whether you buy a house or a condo, it's important to do your homework and consider the future of the neighborhood you're buying into. The old axiom of "location, location, location" remains true for both. Each is a significant investment, and you need to find a safe and vibrant neighborhood capable of nurturing your investment into the future.

Unsure about how much you need to save in order to make a down payment on a home? There are several options.

It's not always easy to save up enough to make the traditional 20 percent down payment on a home. Fortunately, lenders today offer many low-down-payment mortgages. But when deciding how much to put down, you should consider the following:

Is 20 percent the standard down payment?

In order to qualify for a conventional mortgage, lenders usually require a minimum down payment of 20 percent. If you put down less than 20 percent, most lenders will require you buy Private Mortgage Insurance (PMI). This insurance typically costs about one-half of 1 percent of the purchase price of the home and protects the lender in the event that you should default on the loan. Your overall mortgage costs will therefore be less if you come up with 20 percent down and can avoid having to pay PMI.

What if I put down less than 20 percent?

If you can't afford a 20 percent down payment, paying PMI may be your best option. And once you reach 22 percent equity in your home (or sometimes 20 percent equity with a good payment history), you can get your lender to cancel the insurance. An alternative is to apply for an 80/10/10 loan. It enables you to avoid PMI by financing half of the required 20 percent down payment with a second mortgage. The way it works is that 80 percent of the purchase price of a home is financed through a first mortgage, 10 percent through a second mortgage, with the final 10 percent coming from the down payment. Or you can apply for a government-insured FHA loan. Again, you will have to pay for insurance, but you may qualify with a down payment as little as 3 percent.

What about putting down no money at all?

It is possible to finance 100 percent of the purchase price of a home with a mortgage that requires no down payment at all. The disadvantage of this type of financing is that you are likely to be charged a higher interest rate than that of a standard mortgage. This means your monthly mortgage payment will be higher. Also, because you didn't make the standard 20 percent down payment, you will have to pay PMI.

Let's review the options

When deciding how much to put down on a home, it's important to know what your options are so you can decide what works best for you.

Would you prefer getting instant equity in your home and lowering your monthly mortgage payment? Then putting down 20 percent may be best for you.

Are you unable to come up with a 20 percent down payment but want to avoid paying PMI? Then you may want to consider an 80/10/10.

Can you only come up with a 3 percent or 5 percent down payment and don't want to wait to buy a home because you are concerned about rising house prices? Maybe a government-insured FHA loan would be a good answer.

Do you have no savings at all but are so eager to enter the real estate market immediately that you are willing to pay the extra costs involved in a no-money-down mortgage? Provided you are able to handle the required payments and are confident your financial situation will enable you to refinance for a mortgage with better terms in the future, it could be the way to go.

The important this is to evaluate your own situation carefully before you decide how much to put down on a home.

It's never too early to start planning when you want to buy a home. These seven steps will put you on track.

1. Decide on your price range

Calculate how much you can afford. For example, if you can afford a maximum monthly payment of $1,000, you will be looking at a total loan amount of about $167,000 (assuming a 30-year fixed rate at 6 percent). And, remember, owners have different monthly bills than renters. Along with the mortgage payment, you'll have to pay homeowner's insurance, utilities and property tax. If you are realistic about your limits, you can focus on the right price range.

2. Look at your current budget

Have a look at your income and both long- and short-term expenses. Include any expected changes. Will that new job mean a rise in pay? Are you planning an expensive wedding or making a big purchase, such as a car? A careful plan will show where you have flexibility in your cash flow.

3. Open a savings account

Keep a separate home-savings account and don't dip into it. This is the time to cut back on your expenses as much as you can in order to save for the down payment. So, curtail dining out and delay the purchase of new furniture. Save tax refunds, cash gifts or bonus checks. Give yourself a financial goal and a fixed time to reach it, say six months or a year, and then assess your situation.

4. Check out down-payment assistance

Although it's nice to have a 20 percent down payment, it's not necessary. Many lenders offer low down-payment products. Start investigating.

5. Get pre-approved for a mortgage

If you know how much you can borrow, you won't have to make an offer conditional on financing -- and your offer will be more appealing to sellers. A lender will base the pre-approved figure on your income, credit and debts.

6. Don't forget the extras

Aside from the down payment and the first mortgage payment, there are fees that may surprise a new homeowner. Closing costs can range anywhere from 2 to 6 percent of your mortgage amount. Plus, a home inspection may cost several hundred dollars. You may also have to hire a moving van or even stay in a hotel for a few days. Plan to save enough money to cover all of these expenses.

7. Your REALTOR® can help

Look for a REALTOR® with whom you are comfortable. After all, you will be spending quite a bit of time together. A REALTOR® will discuss the available homes in the neighborhood you are interested in and provide information on recent selling prices of comparable homes.

Curb Appeal Counts

Try to think of your home's appearance as a form of advertising.

You're ready to put your house on the market. Inside, it is beautifully decorated and sparkling clean. That bit of peeling paint on the porch and the bald spots in the garden won't bother prospective purchasers, right?

Maybe not. And then again, they may drive by, see these flaws and take your house off the list of houses they plan to view. First impressions count.

What real estate agents call "curb appeal" is the impact your house makes when seen from a car or the sidewalk. If the exterior of the house and the yard are tidy and well maintained, prospective purchasers walk in with a pleasant feeling of expectation that the interior will match up. If the lawn is shaggy, the windows are dirty and the doorbell doesn't work, they will be on guard for problems inside.

Here's a short list of things you can do to increase your home's curb appeal:

• cut and rake the grass and water frequently enough to keep it green; fill and seed any bare patches.
• wash windows and replace any cracked glass.
• weed and edge the garden.
• bridge gaps in foundation plantings with bright annuals in containers.
• remove flaking paint and stucco from the steps, porch or deck, door, trim and storage sheds and repaint.
• keep the lawn and porch or deck clear of bikes, toys, gardening tools, flyers and other clutter.
• keep the pool immaculate.
• make sure the front door opens and shuts smoothly and the doorbell functions.
• tuck garbage containers out of sight.

It's a good idea to ask your selling agent to take a tour of the exterior, note any flaws and tell you what you need to do to make your home more sellable.

If you don't have the time or skills to make repairs or spruce up the garden yourself, consider hiring a handyman, gardening service or pool service to visit your home a few times before you list and while it is on the market. Check out ads in the local paper or ask neighbors or your agent to recommend people who can help you at a reasonable price.

Try to think of your home's appearance as a form of advertising. The few hundred dollars you invest in increasing its curb appeal can mean more viewings, a quicker sale and -- possibly -- a better price.

Real estate commissions: What you need to know

Confused about real estate commissions? You're not alone. Here are some answers to a few of your most common questions.

There's no question a good real estate agent can be a valuable resource when it comes to buying or selling a home. But how much is that help going to cost?

First of all, if you're the one buying the home, it isn't going to cost you anything. The agent's commission comes out of the selling price. That means it's deducted from the amount the seller receives, not added onto the amount the buyer pays. Of course, it can be argued that as a buyer you are indirectly paying the commission by virtue of the fact that it's included in the price. But following that logic, all homes for sale by owner should cost less than those being sold through an agent, and that certainly isn't always the case.

Second, if you're the seller, you don't have to pay an agent anything up-front to market your home. A real estate agent generally doesn't receive any commission until closing, at which time they will receive the amount stipulated in their contract -- typically somewhere between five and eight percent. But chances are (unless you're in a particularly hot market) your agent is going to have to work hard to earn that commission by investing a lot of time and effort into marketing your home. And they're going to have to give a cut of that commission to both their brokerage and the buyer's agent (unless they represent both the buyer and the seller).

To help take the mystery out of real estate commissions, we provide the following answers to a few of your most common questions.

Q. What is the average commission on a home purchase?
A. The average commission is about 5 percent, although 6 percent commissions are still common.

Q. Who pays the commission?
A. The seller. It is paid out of funds received from the sale of the home.

Q. Does the commission go entirely to the seller's real estate agent?
A. No. The broker whose firm lists the house sets the commission. The listing broker then offers part of the commission -- often 50 percent -- to the broker whose firm represents the buyer. Both brokers then share their portion of commission with the agents who work with the seller and buyer. The agents' share may be as little as 50 percent or as much as 100 percent, depending on their arrangement with the broker. If either brokerage is part of a franchise, it may also pay part of the commission as a franchise fee.

Q. Is it possible to negotiate the real estate commission?
A. Yes. An agent may be willing to negotiate his or her commission in order to get your business. This is especially true if the agent is independent and doesn't have large operating costs. In some cases, both agents might agree to cut their commissions in order to bring down the price of the home if the buyer's offer doesn't quite meet the asking price. Sometimes a buyer's agent may offer concessions such as paid closing costs, a repair allowance or a rebate in order to help close a deal. Buyer rebates are legal in most states.

Q. Will I pay less if I buy a house without using a real estate agent?
A. You might be able to negotiate a reduced price. Since the listing broker won't have to share the commission with another agent and broker, he may agree to a reduced commission and pass the savings on to you. This may also be possible if you use the same agent as the seller -- for example, if you toured an open house and retained the listing agent. This is called dual agency, and is legal in most states, although it may be subject to special laws and regulations.

Q. Is a real estate agent likely to push me to buy a more expensive home so he can make a higher commission?
A. There isn't a big incentive for an agent to push you to buy a more expensive home because of the way commissions are divided. Your agent may be entitled to 65 percent of his broker's share of the commission -- perhaps 3 percent of the sale price. Under that scenario, if you were to buy a home for $260,000, rather than $250,000, your agent would earn only an additional $195. However, there could be an incentive for the agent to steer you toward a house on which his broker has been offered a larger share of the commission. This practice is not prevalent, but it does occur.

Q. Are there other commissions that buyers don't see?
A. In some cases, a seller, listing agent or builder might offer the buyer's agent a cash bonus or other incentive to help sell the house. The buyer's agent should disclose these fees if you ask.

Q. Can I get a lower fee by using a discount broker?
A. A discount broker may offer you lower fees, or a deal in which you pay only for the services you receive. However, discount brokers may be more suitable for those with a good knowledge of real estate, since they may not offer a full range of services.

How much should you offer for that home?

You've found a home you want to buy, but how much should you offer to pay for it?

One of the most perplexing points in the home-buying process is the decision of how much to offer for the home you want to buy. If you offer "too much," you might experience buyer's remorse or feel the house was "overpriced." Yet if you offer "too little," you might infuriate the seller and lose your opportunity to purchase the property.

So, what's the right amount?

To answer that question, you'll need to do some homework and give some serious thought to how sincerely you want to buy that particular home.  

Your agent can make offer recommendations

Don't rely on the listing agent who represents the seller to help you decide how much to offer for the home you want to buy. Rather, ask your own real estate agent about the asking and selling prices of other homes in the area and market conditions that might indicate whether you should offer more or less than the seller's asking price.

If the market is characterized by multiple offers and strong demand relative to the supply of for-sale homes, you might want to offer more than you would if the market were characterized by price reductions and weak demand relative to supply.

You also might want to offer more if the home has certain features that are must-haves for you, but aren't widely available on other comparable homes in the area.

Time pressure could be another reason to offer a higher price if your current home is already on the market or you need to move by a certain date due to school schedules, employment or other reasons.

Some buyers try to anticipate the direction of home prices and build that expectation into their offer. Future prices may be important if you intend to sell the home within a few years, but market cycles may be less relevant if you plan to stay put for a while. Moreover, sellers may be loath to discount their asking price simply because you think prices might be lower in the future.

Offers that are contingent upon an appraisal, financing, the sale your current home or other conditions are less attractive to the seller than are offers that don't include such requirements. If your offer contains contingencies, you may wish to offer a higher price as an inducement to the seller to accept those conditions on the sale.  

Be cautious about online estimates

Automated valuation services on real estate Web sites are a popular resource for home price estimates. These estimates are not appraisals; rather, they rely heavily on historical home-sales data. Consequently, they might not be a reliable indicator of a home's current value, especially if the market is on a turning point.

A similar resource is local multiple-listing services data about homes that are currently on the market. This data may be available on local MLS or brokerage company Web sites.

 

Don't exceed your budget

Never offer more for a home than you actually can afford to pay. Get a pre-approval letter from your lender that states how much you can borrow and an estimate of your closing costs. Be honest with your agent about how much you're willing and able to spend and what features you must have in your home.

Buying a house is the largest investment most people ever make; yet all too often it's a decision made in haste without adequate preparation

Use our list of common house-buying mistakes to avoid costly regrets.

1.  Doing it alone. Buying a house is a complex transaction. Even if you don't use an agent, you'll need a complete, dependable team: lender, lawyer, inspector, insurer, as well as referrals and advice from friends and family. Enlist the help of these individuals early in the buying process.

2.  Buying at first sight. You may be in love with the place, but does it fit your family's needs and budget? Make a list of your needs and wants and make sure the house fits your requirements. Check out the neighborhood and the community before you buy by visiting at different times of the day and week to learn about noise and traffic patterns. Even if you don't have kids, check out the local schools to make sure your resale value will be good.

3.  Not getting pre-qualified and pre-approved. Being pre-qualified gives you a general idea of how much you can afford to borrow. Being pre-approved means a lender has verified your information and credit rating and agreed to provide you with a specific amount of money. You are in a better position to go house hunting knowing exactly how much you can afford and that you have financing.

4.  Overbuying. You may qualify to borrow more, but can you afford to? Analyze your monthly costs: debt, food, transportation, entertainment, and savings. As a general rule, your total monthly debts, including your mortgage, should not exceed 36 percent of your income before taxes. Be sure to budget enough to cover closing costs (often two to five percent of the home's purchase price), plus moving, redecorating and maintenance. Allow for increases in ongoing expenses such as utilities and taxes.

5.  Misplacing your trust. No matter how much you like the agent, sellers, inspector, or the guy down the block who vouches for them, remember this is a business transaction. Your decision is binding. Do your own research and know your support team's roles and responsibilities.

6.  Relying on oral agreements. Get it right and get it in writing. Written agreements almost always trump oral ones when it comes to contracts. If the offer says the lawnmower is negotiable, but the agent says it's included, get it in writing.

7.  Skipping the fine print. You need to understand what you're signing before you pick up a pen. Ask for documents in advance, make time to read them and ask questions. Get copies of your mortgage papers a few days ahead of closing.

8.  Forgetting or betting on resale. Avoid buying a home that costs 50 percent more than neighboring homes and think before buying the most expensive home on the block. Your neighbors' lower home values will weaken yours. Remember, markets change. If you buy intending to flip your investment and the market falls and you have to sell, your selling price may not be enough to even cover your mortgage.

9.  Making an unconditional offer. Protect yourself with at least two of these contingencies in your offer:

• Mortgage financing -- You're pre-approved, but is the house? Before a bank will lend you money, it will want a formal appraisal of the property to confirm that there is sufficient equity in it to warrant the loan. If the house appraises lower than the sales price, the loan may be declined.
• Inspection -- never buy an existing or new home without a thorough home inspection. Walk through the home with the inspector to learn more about the house and any concerns he or she may have.
• Insurance -- confirm you can get adequate coverage. In some areas, it's difficult to get hazard insurance.

10.  Having buyer's remorse. No place is perfect. There will always be surprises. Don't let a few initial blips spoil the whole ride. And don't miss a great house waiting for the perfect one!

Take a cue from high-end homes.

Luxury homes showcase the latest in

floor plans, appliances and décor. Check

out your local tour of homes or visit

some open houses in new construction

neighborhoods. Living spaces like

mudrooms and home offices are all the

rage; formal living rooms are not.

Stick with your style.

that your remodeling projects should reflect

the style of your home. For example, if

you live in an ultra-contemporary condo, a

quaint country kitchen might seem out of

place and turn off potential buyers when

you're ready to sell.

Kitchen updates.

heart of the home for many families and in

addition to food preparation it's also a place

to pay bills and do homework. Today's

kitchens tend to be open and often include

cabinets for TVs, computers and small

appliances.

There are so many choices when it comes

to kitchen cabinets, fixtures, flooring and

appliances; where do you start? Lowe's

offers a free Kitchen Renovation Planner that can be downloaded here.

http://www.lowes.com/lowes/lkn?action=pg&p=kitchplan/KitchenRenovPlanner.html&rn=none&lks=pcgp3

Go green.

Eco-friendly materials like

bamboo flooring are gaining in popularity.

So are Energy Star® appliances, windows,

and lighting products, which increase

energy efficiency. Lowe's has a wide variety

of energy-saving products that can save

you money. Check it out: click here.

http://www.lowes.com/lowes/lkn?action=pg&p=/MiddlePageFiles/middleEnergyCenter.html&source=endban&campid=Energy

Go outside.

the latest trend in adding a room without

adding four walls. At the high end of the

market, outdoor living rooms, kitchens and

fireplaces are becoming standard.

Technically speaking

become more dependent on technology,

homes will become "smarter", allowing

homeowners to remotely arm a home

security system, turn appliances on and off,

and control thermostats.

Artisan color trends.

of 2007/2008 turn over a new leaf

encompassing the natural, the ethereal,

the homespun and the restful. These vivid

elements inspire sophistication, regality,

and simplicity. To view the Artisan color

pallets, click here. http://www.valsparatlowes.com/explore-colors/color-by-trend.html

You can also create

your own Idea Notebook online, courtesy

of Valspar and Lowe's.