As A Buyer...

It is important as a homebuyer to be realistic. Keep in mind homeownership, on any level, be it condominium, townhouse or single-family home, provides you with a foot in the door to the real estate market, a chance to save rental dollars and the opportunity to realize tax benefits. In addition, your first home is the launch point from which to trade up to a larger home in the future.

Make three lists - one for absolutes, another for electives and a third for frills. On the list for absolutes, put the essentials... the number of bedrooms and bathrooms, garage, basement, fireplace, and so on. Anticipate your housing needs for as long as you figure you will be living in the house. For the electives, list the items you could use if you could afford them, and for frills put down what may be nice but not necessary. As you compile your lists, you'll have the beginnings of an overall checklist you can use to rate the houses you'll be visiting. Comparing one house with another is difficult, so a master checklist is invaluable.