Congratulations! You have finished your training. You have started your career and perhaps entered into a stable personal relationship. You have already worked hard and saved for years. Finally, you have determined for yourself that buying is better than renting at this stage of your life and in the current market. Now you are ready to purchase your first permanent residence. What additional considerations may come to mind?

Location, Location, Location
This is probably the most famous adage in real estate. All other things being equal, a home in a desirable location is more valuable than an identical or similar home in a less desirable location. It is one of the most important factors for a home's future resale or marketability.

Should I Use a Realtor? Do I need an attorney?
If you are moving to a new town or neighborhood, a realtor can prove invaluable in providing information about the local community and its real estate market. Also, a realtor is a real estate agent committed to a code of professional ethics and client service.

However, a property may cost more if you use an agent. A full price real estate brokerage often charges the seller a commission of 6%, with half to the selling agency and half to the buyer's agent. On a $400,000 house, for example, after paying commission of $24,000, the seller is left with $376,000. In contrast, if one can locate a house being sold "by owner," that is, you negotiate directly with the seller and no agent is involved, then one may achieve a compromise price in the middle that is better for both seller and buyer.

As regards needing to use an attorney, realtor boards in some counties and cities have developed standardized contracts for both buyers and sellers to sign, with the realtor alone being present. In most cases, this process works well and is less costly than hiring legal help.

In other locales, attorneys are the ones who traditionally prepare real estate contracts. Regardless of what the custom is where you intend to live, if your purchase transaction is particularly complex, involves a co-op board or homeowners' association, a purchase of a foreclosed property, multiple owners, or zoning issues, etc., be advised to get legal advice. The expense may avoid much unexpected heartache later on in your transaction.

Appraisal
'Comps' are the basis of most home appraisals, i.e. the sale price of other similar area properties that have sold within the last 60 - 180 days. If possible, appraisers should be familiar with the specific area where one is buying. A low appraisal value may result in a higher required down payment or a deal being scuttled by one's mortgage bank. Thus, a buyer should try to be knowledgeable about local property values and whether they are rising or falling. In general, avoid paying much of a premium over a property's appraised market value.

Schools
The quality of nearby public schools is a key determinant as to the desirability of a neighborhood. Everything else being equal, people often do their best to get into a 'good' school district. This applies even to couples without children or beyond the age of child rearing.

For those families anticipating a future need for private schools or religious education, also important are the locations of these institutions relative to the planned home purchase. Choosing a suburban home too far, e.g. 15 miles, from a school or worship center may result in future carpooling difficulties and lost family income. Many are the instances when the lesser earning spouse gave up a professional second-income position just to chauffeur children to or from class for three hours each day.

Commute, Commute, Commute
Similarly, purchasing decisions sometimes ignore the length of a commute or the distance it takes to get to a highway, train station, or even the effort to get out of one's own neighborhood. Over time these factors add up. The stress from heavy traffic commutes, of 1 to 2 hours each way, can be overwhelming.

Zoning and HOA Rules
You may have found the ideal house that needs just one more thing to be built: an extra room for a bedroom or office, a two-car garage, a downstairs apartment for a multi-generational family, a wing for a medical office or a spouse's pre-K nursery school business. Alas, the town's zoning requirements, set-back rules or a homeowner association's rules may prohibit this item on your family's wish list.

Do not assume you can go ahead and construct this project even if you can afford it. Sometimes costly architectural drawings, legal fees, neighbor approval and committee votes are needed to obtain a zoning variance. Other times, a wish-list project may be unobtainable in any event. Always check on a planned project before signing a purchase contract. Much heartache and expense, even having to relocate again, may be avoided by thorough advance planning.

Real Estate Taxes
Tax assessments may not have changed for many years if a home's former owner has lived there for a long time. Now, a transfer of ownership at a high sales price may trigger a property's tax roll reassessment. Obtaining a building permit for a project also may trigger a higher tax bill. All at a time when the ability to deduct these costs on one's federal income tax return may now be restricted. Be advised to do your own homework in advance. Do not take the real estate agent's statements as dispositive on these matters.

20% Down?
Although 20% is the often cited norm for a home down payment, National Association of Realtors research states that in 2017 the median down payment for most homebuyers was actually 10%, with trade-up buyers putting down 14% and first-time buyers 5%, respectively. There are many reasons for buyers to put less than 20% down and not wait years to save that full amount.

First, waiting may result in paying a higher home price down the road, having to pay higher interest mortgage rates if rates rise, and thus, losing potential equity if one misses a window to buy. No one builds any equity by renting longer.

Second, a lower down payment will leave buyers a cash cushion for closing costs, renovations, savings and investments, and most importantly, unforeseen financial emergencies. Although automobile accidents, forest fires, hurricanes, and government shutdowns, just to name a few, do not occur every day, having liquid assets when they do is most helpful.

Good Luck
As you navigate the rough sea of buying your first residence, know that you will soon reach your port. Finally finding that secure berth of a home, that can be called yours, will give you much joy despite the many tasks, chores and repairs. May that house be the home that's also the place where you have some of the best experiences and remembrances that life can offer.