Neighborhood. Unlike the rental world, where neighbors last a year, a house is a long-term commitment. Your neighbors when you move in may very well be your neighbors for some time to come, and that`s something to keep in mind when looking at a potential new home. Also consider proximity of the house to things like schools, stores, and major roads. If there`s a highway nearby, some questionable properties, an unfriendly feeling, or anything else that feels uncertain, it might be wise to give that house a pass. After all, you might be able to fix your house, but you can`t fix your neighborhood.

Major repairs. Many inexperienced home buyers make the mistake of not checking out every aspect of the property thoroughly. Getting a great deal on a house with a roof that needs replacing is not that great of a deal. Check out the furnace, central air, and the plumbing and electrical systems. Major problems don`t necessarily mean you shouldn`t buy the property, but they should be included in the price negotiations. A good realtor or seller will factor in such considerations, and you may be able to buy the house for less if it`s understood that you`re responsible for replacing the roof. Just don`t get duped. Don`t take anyone`s word that the furnace is new- make sure of it.

Water Damage. Check this one out- thoroughly. Is the house located in a high-flood area? Is something important (like the roof or basement) leaking? If water damage occurred once it`s not likely to stop unless the problem- aka the flow of water- is corrected. This could lead to expensive irrigation systems and internal repairs. I heard a horror story of a house that began with a water spot on a wall, and led to removing the floor and vacuuming out two feet of water. Water damage is often a sign of a bigger problem. Unless you can trace it to its source and identify how to stop it, it might be best to steer away from water-damaged property altogether. Why sign up for trouble?

Keeping your eyes open going into a real estate negotiation is the most important thing. If something doesn`t feel right, trace it backwards until you figure out why, and then decide if it`s worth it to go ahead with the purchase. Sometimes you`ll find it`s easy to walk away from a great house in a bad neighborhood. Other times, you can get your purchase price substantially reduced if you can point out exactly what repairs are needed. The trick is to catch those needed fixes- because the seller may not point them out for you.