This is the first of an ongoing series of caveats for buyers and sellers. Many of these items have been discussed in my previous articles.

DON'T take the buying process lightly, leaving responsibility for your decisions to someone else, like your agent.

DO consider buying a home as a part-time job. Learn all you can. A quality agent is indispensable in helping you understand what is involved.

I am not suggesting you become a real estate agent (unless you want to). I am saying, however, that I have seen far too many buyers take the path of least resistance by not participating in the process. A number of them get burned financially and emotionally. Those that do not, can consider themselves lucky. Don't rely on luck.

DON'T wait to find an agent until you're "ready."

DO start looking right away for an experienced professional to help you.
Some people initiate their search a year or more in advance, to get a feel for the market. Regardless of when you start, if you are taking the time to look at houses (usually open houses), it is to your advantage to begin a relationship with someone in the business. That person can guide you and help use your time more effectively.

Don't be afraid of getting stuck with a "salesperson" who will not release his or her tentacles until you buy. Understand that there are some excellent agents out there if you make the effort to find the right one for you.

The best agents build long-term relationships. They will be happy to maintain a non-stressful connection and stay in touch until you say it's time to buy.  The contacts you have with the agent over time will give you an opportunity to find out whether or not you are comfortable with that individual. If you are not, you can make a change at a time that is a lot less harrowing than when you are in the middle of a transaction.

DON'T work with just any agent you happen to meet.

DO choose your agent with the same care you use for your doctor, tax accountant or attorney. Make sure the agent takes at least an hour to interview you before he or she shows you property. Insist on someone who has done extensive business in the area. Make sure he or she has the technical and communication skills to competently represent and protect you.

DON'T work with more than one agent at one time in the same area.

DO pick one and stick with him or her. Top, successful agents will not waste their time with buyers who refuse to be loyal. If you want loyalty, you need to give it.

DON'T have other agents show you property once you have selected an agent.

DO call your agent. He or she can show you everything on the market.

DON'T spend much time and energy looking at houses until you have talked with a local lender.

DO get a recommendation from your agent and have a lender "pre-qualify" you. Getting "pre-approved" is even better. Pre-approved means your finances, available cash, credit and employment have all been checked and approved. Your loan is contingent only upon the appraisal of the home you select. This will make you a stronger buyer when you make your offer.

It is best to use a lender your agent suggests because that person has already been proven to give good service and competitive rates. Most importantly, your agent will work only with lenders who are reliable. Someone who sounds like they have the best rates on the day you ask, may not come through for you when timing is critical.

DON'T underestimate the negative impact of credit problems. Lenders take them very seriously.

DO disclose everything relevant about your credit and financial situation to your lender and agent. Buying a house is a bit like going to the doctor. You must provide personal information and trust that it will be used only in your best interests.

DON'T make an offer without having a sense of the neighborhood.

DO go to open houses and drive around different locales to get a feel for them. Periodically, I hear stories from buyers who didn't know enough about the area where they were buying and are now unhappy. Usually, they sell for a loss and move to a more desirable location.

DON'T fall into the trap of thinking today's market is permanent.

DO take advantage of soft prices and affordable interest rates when they are available. Keep in mind: nothing lasts forever; the market is always changing.

DON'T overpay because of emotional attachment to a property.

DO consider your purchase as an investment and be clear on today's value of the home you are buying. Although 1996 has not been nearly as frenetic as the late 1980's, there have been numerous instances of multiple offers on properties. In a bidding situation, people sometimes lose their perspective.

The increased tempo of our market has induced some buyers to make the mistake of paying too much. They may not realize the problem until they try to sell at some future date. Many sellers who bought between 1989 and 1992, even 1993, are chagrined at the losses they are forced to take when they sell now.

Do not confuse intelligent caution with the paranoia of offering substantially less than the market value on a home you like. The key is to work with an experienced Realtor who will help you understand values.

DON'T eliminate properties for cosmetic reasons: paint, carpets, etc.

DO look at the house, and surroundings for what they can be with some decorative and, perhaps, minor structural changes. This assumes you are interested in buying the most house for your money. If you don't mind paying top dollar, there are many homes that have been "staged" for sale to buyers who want to just turn the key and move in.

DON'T buy serious "fixer" properties unless you fully comprehend what this will mean for you.

DO ask appropriate questions about all the implications, costs and risks related to the purchase. Remember, there is no "free lunch." People don't sell $300,000 homes for $225,000 unless there are expensive problems.

DON'T sign a contract without an inspection contingency.

DO hire a professional home inspector to thoroughly inspect all the major systems. Don't skimp on the price of the inspection. Ask your agent to recommend a respected, experienced inspector. Don't use your Uncle Joe, the plumber, to inspect for structural integrity, foundation, electrical, drainage, roof, etc. He may not charge you, but he also may not want to admit he doesn't know everything, and you will be the loser later.

DON'T accept responsibility for an underground oil tank on the property.

DO insist in the contract that the seller remove it before close of escrow. Have the seller provide you with written substantiation from all applicable governmental authorities that the tank has not leaked and contaminated the soil. If it has leaked, move on to another property. Although not common, you don't know what grief is until you have to deal with this problem as a new owner.

Final Thoughts

The above are only a small sample of issues buyers need to consider. Educate yourself and work with a knowledgeable real estate professional who cares about you more than about a commission. The less you know, the more protection you need. The more you know, the more you will appreciate how much a good agent will do for you.

Related Articles:Buyer's Do's & Don'ts, Part 2; Seller's Do's & Don'ts, Part 1 and Part 2; How to Interview Agents, Part 1 and Part 2