Whether you are looking to invest or looking for a home for yourself, when buying a home, you are looking for the best deal while still getting what you need and desire in your home.

Alan Glass, on REALTOR.com, outlines the three principles a home buyer needs to apply when making a purchase.

1.      What Kind of an Investor are you? Are you willing to put in the elbow grease it will take to uncover that buried treasure? Or are you looking for something that you can move into in a neighborhood with long standing value?

2.      Invest with a Margin of Safety: minimize risk by basing your purchase on your actual income, rather than fabricated or scheduled income." Says Glass. "The burden of a monthly mortgage payment becomes much heavier in trying times."  In other words, stick to your budget.

3.      Expect Fluctuation in the Market. "The market will fluctuate, and sometimes wildly." Warns Glass. "Rather than fearing volatility, use it to your advantage to get bargains in the market or to sell out when your holdings become way overvalued."

Making sound decisions in the home buying process will result in a successful purchase and a happy home.  "In order to make smart decisions, home buyers today must understand their tolerance for risk, plan for unexpected surprises by building in a margin of safety, and prepare themselves to act when opportunities present themselves." says Glass.

Read the full story at REALTOR.com.

photo credit: nola.agent

Posted in Buyer Resources, Real Estate Trends

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