This is the first in a series of 3 posts on becoming a good buyer. Becoming a good buyer is probably the most important thing you can do as part of the home buying process, especially if you are buying for the first time. So, what is a good buyer and how do you become one?

Being a good buyer means becoming as educated as possible about the home buying process, understanding the local market conditions, and having realistic expectations of what your needs are relative to the amount you can afford to spend. Regardless of the amount you are planning to spend, if you are not honest about your needs and what you "must have" versus those things you are willing to trade-off, and you do not understand how the process works, you will not be an effective consumer, and will end up frustrated and disappointed.

No matter how much or how little you spend, everyone wants to feel they are paying a fair price for what they purchase in their particular market, and understanding the local market conditions will help. And being a good buyer means being serious about making a purchase when you find the right property; simply spending time looking at properties without the intent to buy, or having no idea of what you want and where you want to live is a waste of time for you, your Realtor and the sellers.

Being a good buyer also has to do with the relationship you have with your real estate agent, and the on-going communication between both parties throughout the process. Your agent is there to assist you in finding the right property at a price you can afford, but s/he is also there to provide information, guidance, and support, negotiate the deal, and coordinate the entire process with the other parties until the closing. At the same time, however, your agent needs you to clearly communicate your needs, concerns, and questions, cooperate with requests for information, and provide, as well as receive, open and honest feedback.

Here are some specific suggestions:

• Make the decision to buy - Are you serious about a making a purchase or "just looking?" Determine your time frame - it may be general or more specific (e.g., if there is a lease termination). And think about your motivation - are you just thinking about a move or are they significant issues that you need to address (e.g., change in family status, relocation).
• Determine your needs - Type of property, location, amenities, size (bedrooms, bathrooms), price range, etc. Some of these may change over time, and you should be prepared AND willing to give up some things if you can't find "exactly" what you want. You will find that this is typically an evolutionary process and you see properties, but going in blindly without a clue of what you want is a waste of time.
• Get a loan pre-approval - This is critical for you AND for sellers; many sellers will not accept an offer without pre-approval, and often an agent will require it as well. A bank or mortgage company can pre-approve you over the phone in many cases in just a few hours or less, based on your credit, income, cash and debts, so you will know exactly what you can afford and will not waste time looking at properties outside your budget. But you can also get the most home for your money if you know what you can spend.
• Make a budget - not only do you need to know what you are pre-approved for, but you also need to take into account your monthly budget for your lifestyle and other expenses that the bank does not take into account. What the bank says you can afford and what truly can afford may be very different. You don't want to spend your entire monthly net income on the house!
• Select a real estate agent to help you - Some people choose to look on their own and want to only work with an agent once they find the right property; others work with multiple agents simultaneously. Either way, you are probably wasting some time and not being an effective consumer. A good agent can save you TIME and MONEY! S/he can help you avoid problems, provide answers to all your questions, and keep you abreast of what is happening in the market. And you really need someone to represent YOUR INTERESTS in the transaction.

Hope this helps you get started. Ket me know if there are any questions, and stay tuned for Part 2.