by Karen Greer

Created on: April 08, 2009   Last Updated: April 18, 2011

My home, mi casa, my private sancutary...easily the most valuable resource I have, because truly there is no place like it. In these unique and troubling times with the current economy and the recent burst of the housing bubble, the decision to purchase the right house at the right price is increasingly more difficult to make. Invariably, the decision to purchase a home is always a very personal one. But to make certain that you're maximizing on the most house for your money, here are a few things to note when narrowing down your options:

Spend a little time to deliberately set your goals for this purchase. Almost all real estate transactions are based on the age and condition of the home and an average price per square foot determined and established by the local real estate market in your area. So, older unrestored homes are usually on the lowest end of that scale while newly built homes are on the highest end. Central heating and cooling, the exterior covering and the number of bathrooms are just a few examples of some of the things factored into the market value of a home. For this reason, it's important to sincerely consider what factors in a home are important to you before even looking into the options. Determining your essential needs and your preferences in a home will allow you to get a firm handle on the the average price per square foot for the homes that really meet your criteria. From there, you must search for the homes that distinctly offer those amenities or must haves for you. For example, if your must have is three bathrooms, research homes that specifically offer that criteria and then you will be able to see the range of homes with this quality and the average price per square foot.

Make sure you don't get too much palace for your paycheck. Besides the obvious problem of having a home that isn't worth it's loan value, as so many people are facing today, the other consideration are the long term expenses to live in the home of your choice. Things like heating and cooling, maintenance and upkeep are an expense that don't expire. If you can make the monthly mortgage but your utilities are going to cost an additional $500 per month, then maybe that won't be so comfortable for a long term commitment. You can call the local utilities companies and find out the average cost of electricity, gas and water use for the home as recorded for the last occupant.

Always check out for sale by owner homes first. The real estate market and their agents have fared well over the last few decades to meet the growing demands of builders, buyers and tenant housing; clearly there are some nice conveniences to having someone do the legwork for you. However, the most house for the money is generally going to come from an individual who is usually only interested in making a fair return on his investment. Typically a "for sale by owner" can save thousands for the buyer because those real estate profits are left on the table. When an agent list a home, they generally want to price the home value slightly higher, subsequently increasing the margin of commission in their pocket. So, the combination of the increased sale price and the additional real estate commission will literally add thousands of dollars to the cost of a home.

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