Property Virgins

My first venture into real estate was a good experience. However, knowing what I do now, I see where and how I was shafted.

Being a property virgin isn’t a bad thing. Finding a first home is fun, exciting a maturation experience.

My husband and I hired a real estate agent. He found us houses to look at, and we went with him to walk through various homes. We were like most first-time home buyers and wanted to look at as many houses as possible, and we kept changing our minds. We also had unrealistic expectations and thought we could get a lot for a little.

We ended up finding a small 1,200 square foot home that had way too much wallpaper, ugly carpet and a beautiful front porch. It was on a dead end road and it had three bedrooms and 2.5 bathrooms. It even had a wood-burning fireplace. We knew we could change the cosmetic features so we jumped in.

We didn’t negotiate the price. We just accepted what they offered for closing costs and we didn’t ask them to repair much off the home inspection list. We also didn’t double check the fees and rates on the final documents, didn’t know we could negotiate our realtor fees and didn’t understand the art of finding the best loan.

But, we loved our house.

Consider these tips from MSN Real Estate before heading out to buy a first home.

1. Check the selling prices of comparable homes in your area. Websites such as Zillow can give you a general idea of what you should expect to pay.
2. See what you can afford.
3. Find out what your total monthly housing cost would be, including taxes and homeowners insurance. In some areas, what you'll pay for your taxes and insurance escrow can almost double your mortgage payment.
4. Find out how much you'll likely pay in closing costs. The upfront cost of settling on your home shouldn't be overlooked. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items such as homeowners insurance or homeowners’ association fees.
5. Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28 percent of their income on housing costs. Go much past 30 percent and you risk becoming house poor.
6. Talk to reputable real-estate agents in your area about the real-estate climate.
7. Remember to look at the big picture. While buying a house is a great way to build wealth, maintaining your investment can be labor-intensive and expensive. When unexpected costs for new appliances, roof repairs and plumbing problems crop up, there's no landlord to turn to, and these costs can drain your bank account.

Staci Dennis lives in Norfolk, VA, is married to Eric, who is awesome, and has a fat cat and two cute Puggles. She has been published in various newspapers and magazines across the nation, and worked as a reporter for 12 years. She is a contributor for Nexxt and Realestatejobsite. You can read more of her blogs on Realestatejobsite blog.