You’ve been out looking at homes with your realtor all day. And as you walk through the door of the last house on your list, your mouth falls open. Finally, you’ve found The One, the perfect house. Stars begin to shimmer in your eyes. You love the layout, the paint colors, and the little powder room by the back door.

So you make an offer and move in within the month. It’s not until things settle down that you discover the roof leaks and the foundation might need to be replaced…immediately. Suddenly, the stars dim as you face the prospect of several expensive repairs and unexpected home improvement costs. Not fun at all.

Buyers, especially first-time home buyers, often get caught looking at the wrong things when they buy a house. They fall in love with all the things that are easy to fix, and never think to look at the really important clues that the house might be more trouble than it’s worth. I did the same thing with my first house and many others have made similar home-buying mistakes. So, what should you look for to make sure you’re not buying a lemon?

1. Check the Foundation

The home’s foundation is probably one of the most expensive things to fix, which is why you need to go down to the basement before you even look at the rest of the house. Do you see any cracks in the concrete or stone? If so, the foundation might be structurally unsound. If the basement is finished, then look for cracks in the drywall, especially around windows and doors.

2. Check the HVAC Equipment

While you’re down in the basement, look at the heating and cooling equipment. How old is it? Does it look like it’s running properly? Are the vents connected well? These are important questions to answer in order to make your home energy efficient and ensure that you reduce utility bills. Replacing a home’s HVAC system can cost tens of thousands of dollars, but many first time buyers never give it a second look.

3. Look for Water Damage

If the house has had problems with water in the past, you’re looking at several expensive fixes. First, what happened once (like a leaking basement) can easily happen again. Second, that water damage could have opened the door for mold, especially the dangerous black mold, to start growing. Look for brown or white stains down the side of the basement walls (which would indicate a past leak). If the floor is bare, then look for horizontal stains. Be suspicious if the basement has been freshly painted. Sellers often do this to hide water damage stains. It’s also important to check the bathroom, and under the kitchen sink. Look for stains that would indicate mold growth.

4. Check the Electrical

If the home you’re looking at is pre-1930′s, it might still have the old knob and tube wiring. Knob and tube wiring is relatively safe as long as it hasn’t been tampered with in any way. For instance, if the house has blown insulation in the attic sitting on top of the knob and tube wiring, this is tampering (and it’s a serious home fire safety hazard). Most insurance companies consider knob and tube wiring to be unsafe, so you’re going to pay more for homeowner’s insurance coverage (if they’ll even insure you at all) if you don’t replace it. Replacing it means rewiring the entire house, which will cost tens of thousands of dollars.

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5. Never Buy a Home You’ve Only Looked At Once

Remember, when you first see that “perfect house”, you’re looking through rose-colored glasses. Always sit on the decision to make an offer, and go see the house again a few days later.

6. Always Get a Home Inspection

Seems like old advice, but plenty of people still don’t get a home inspection done before they make an offer. If the home inspector says more research is necessary, or their report is inconclusive, then get a second opinion.

7. If the Price Is Too Good to Be True, It Probably Is

Trust your gut here. If your dream home’s price is suspiciously low, there’s probably a good reason. Beware. Buying a house is a huge decision and investment, especially if it’s your first. Don’t be so easily swayed by first impressions and appearances. Make sure you do your research and watch out for some of the pitfalls mentioned in this article.

Have you had any surprises after buying your first house? What are some other things to watch out for?

Source: money.usnews.com

With over 2 million real estate agents according to the National Association of Realtors (NAR), becoming a successful real estate agent takes more than just a license and a knowledge of current laws and regulations.The first year drop out range estimated to be from 40% to 80% demonstrates that many real estate agents are not as successful as they could be and research suggests that 90% give up after 3 years. The following 7 tips may help you avoid becoming one of these statistics.

1. First and Foremost YOU are a business. Real estate agents work for a broker, but are independent, commissioned sales people. This means that you are a small business and must run your practice as a business. Again, remember you are a small business owner.

2. Embrace a Planning Attitude If you don’t have a plan, then you are on some else’s plan – usually the successful real estate agent’s. During the last 10 years, what I have learned as a performance improvement consultant or coach is that most people place more value in planning a trip to the grocery store or a vacation than planning their lives either professionally or personally.

3. Research Your Market Plan Since you, as the real estate agent, are responsible for your own expenses, do your research specific to your marketing plan within your strategic plan. Time spent in constructing your marketing plan is definitely well spent. NOTE: Remember a business plan usually is data driven, while a strategic plan identifies who does what by when.

4. Establish Sales Goals Using your strategic plan, establish sales goals. If you are new to this industry, it may take 6 months before the first sale.

5. Create a Financial Budget Budgeting is critical given the up and down of this volatile market place. Your financial budget should plan for your marketing costs, any additional costs such as education and your forecasted income.

6. Make Managing Yourself a Priority Building a business is not easy. You must learn how to manage yourself especially in the area of time management, ongoing real estate business training coaching, continuing education units, and personal life balance. Real estate is said to be a 24/7 business much like any small business. However, it is important not to lose sight of your personal life including family, friends, physical health, etc.

7. Find a Mentor or a Real Estate Coach Going it alone is not easy. Take the time to find a mentor who can help you steer through some of the known obstacles and help you during the “peaks and valleys.” If you have the resources, you may wish to hire a real estate coach or an executive coach who specializes in small business help and sales.

Being an incredible sales person and entering the real estate market does not guarantee similar sales success. However, these 7 tips may help you avoid many of the pitfalls by not being one of the four real estate agents who quit within one year or one of the nine who give up after 3 years.