Deadly Mistake #1: Thinking you can’t afford it.

Today, buying the home of your dreams is easier than ever before. Many people who thought that buying the home they wanted was simply out of their reach are now enjoying a new lifestyle in their very own new homes.

Buying a home is the smartest financial decision you will ever make. In fact, most American and Canadian homeowners would be financially broke at retirement if it wasn’t for one saving grace — the equity in their homes. Furthermore, mortgage rates are more flexible today than ever, and tax allowances favor home ownership.

Real estate values have always risen steadily. Of course, there are peaks and valleys, but the long-term trend is a consistent increase. This means that every month when you make a mortgage payment, the amount that you owe on the home goes down and the value typically increases. This “owe less, worth more” situation is called equity build-up, and is the reason you can’t afford not to buy.

Even if you have little money for a down payment, or credit problems, chances are that you can still buy that new home. It just comes down to knowing the right strategies, and working with the right people. See below.

Deadly Mistake #2: Not hiring a buyer’s agent to represent you.

Buying property is a complex and stressful task. In fact, it is often the biggest, single investment you will make in your lifetime. At the same time, real estate transactions have become increasingly complicated. New technology, laws, procedures, and competition from other buyers require buyer agents to perform at an ever-increasing level of professionalism. For many home buyers, the process turns into a terrible, stressful ordeal. In addition, making the wrong decisions can end up costing you thousands of dollars. It does not have to be this way!

Work with a buyer’s agent who has a keen understanding of the real estate business and who is on your side. Buyers’ agents have a fiduciary duty to you. That means they are loyal to only you and are obligated to look out for your best interests. Buyers’ agents can help you find the best home, the best lender, and the best InterNACHI inspector. This last perk is particularly useful, as there are many unqualified inspectors on the market today.

Trying to buy a home without an agent or a qualified inspector is, well… unthinkable.

Deadly Mistake #3: Getting a cheap inspection.

Buying a home is probably the most expensive purchase you will ever make. This is no time to shop for a cheap inspection. The cost of a home inspection is very small relative to the home being inspected. The additional cost of hiring a certified inspector is almost insignificant. As a home buyer, you have recently been crunching the numbers, negotiating offers, adding up closing costs, shopping for mortgages, and trying to get the best deals. Do not stop now. Do not let your real estate agent, a “patty-cake” inspector, or anyone else talk you into skimping here.

InterNACHI front-ends its membership requirements. InterNACHI turns down more than half the inspectors who want to join because they can’t fulfill the membership requirements.

InterNACHI-certified inspectors perform the best inspections, by far. InterNACHI-certified inspectors earn their fees many times over. They do more, they deserve more and, yes, they generally charge a little more. Do yourself a favor…and pay a little more for the quality inspection you deserve.

Reprinted with permission from the International Association of Certified Home Inspectors (InterNACHI).

Find and correct overloaded circuits.
Never place extension cords under rugs.
Outlets near water should be GFCI-type outlets.
Don’t allow trees near power lines to be climbed.
Keep ladders, kites, equipment and anything else away from overhead power lines.
Electrical Panels

Electricity enters the home through a control panel and a main switch where one can shut off all the power in an emergency. These panels are usually located in the basement. Control panels use either fuses or circuit breakers. Install the correct fuses for the panel. Never use a higher-numbered fuse or a metallic item, such as a penny. If fuses are used and there is a stoppage in power, look for the broken metal strip in the top of a blown fuse. Replace the fuse with a new one marked with the correct amperage. Reset circuit breakers from “off” to “on.” Be sure to investigate why the fuse or circuit blew. Possible causes include frayed wires, overloaded outlets, or defective appliances. Never overload a circuit with high-wattage appliances. Check the wattage on appliance labels. If there is frayed insulation or a broken wire, a dangerous short circuit may result and cause a fire. If power stoppages continue or if a frayed or broken wire is found, contact an electrician.

Outlets and Extension Cords

Make sure all electrical receptacles or outlets are three-hole, grounded outlets. If there is water in the area, there should be a GFCI or ground-fault circuit interrupter outlet. All outdoor outlets should be GFCIs. There should be ample electrical capacity to run equipment without tripping circuit breakers or blowing fuses. Minimize extension cord use. Never place them under rugs. Use extension cords sparingly and check them periodically. Use the proper electrical cord for the job, and put safety plugs in unused outlets.

Electrical Appliances

Appliances need to be treated with respect and care. They need room to breathe. Avoid enclosing them in a cabinet without proper openings, and do not store papers around them. Level appliances so they do not tip. Washers and dryers should be checked often. Their movement can put undue stress on electrical connections. If any appliance or device gives off a tingling shock, turn it off, unplug it, and have a qualified person correct the problem. Shocks can be fatal. Never insert metal objects into appliances without unplugging them. Check appliances periodically to spot worn or cracked insulation, loose terminals, corroded wires, defective parts and any other components that might not work correctly. Replace these appliances or have them repaired by a person qualified to do so.

Electrical Heating Equipment

Portable electrical heating equipment may be used in the home as a supplement to the home heating system. Caution must be taken when using these heating supplements. Keep them away from combustibles, and make sure they cannot be tipped over. Keep electrical heating equipment in good working condition. Do not use them in bathrooms because of the risk of contact with water and electrocution. Many people use electric blankets in their homes. They will work well if they are kept in good condition. Look for cracks and breaks in the wiring, plugs and connectors. Look for charred spots on both sides. Many things can cause electric blankets to overheat. They include other bedding placed on top of them, pets sleeping on top of them, and putting things on top of the blanket when it is in use. Folding the blankets can also bend the coils and cause overheating.

Children

Electricity is important to the workings of the home, but can be dangerous, especially to children. Electrical safety needs to be taught to children early on. Safety plugs should be inserted in unused outlets when toddlers are in the home. Make sure all outlets in the home have face plates. Teach children not to put things into electrical outlets and not to chew on electrical cords. Keep electrical wiring boxes locked. Do not allow children to come in contact with power lines outside. Never allow them to climb trees near power lines, utility poles or high tension towers.

Electricity and Water

A body can act like a lightning rod and carry the current to the ground. People are good conductors of electricity, particularly when standing in water or on a damp floor. Never use any electrical appliance in the tub or shower. Never touch an electric cord or appliance with wet hands. Do not use electrical appliances in damp areas or while standing on damp floors. In areas where water is present, use outlets with GFCIs. Shocks can be fatal.

Animal Hazards

Mice and other rodents can chew on electrical wires and damage them. If rodents are suspected or known to be in the home, be aware of the damage they may cause, and take measures to get rid of them.

Outside Hazards

There are several electrical hazards outside the home. Be aware of overhead and underground power lines. People have been electrocuted when an object they are moving has come in contact with the overhead power lines. Keep ladders, antennae, kites and poles away from power lines leading to the house and other buildings. Do not plant trees, shrubs or bushes under power lines or near underground power lines. Never build a swimming pool or other structure under the power line leading to your house. Before digging, learn the location of underground power lines.

Do not climb power poles or transmission towers. Never let anyone shoot or throw stones at insulators. If you have an animal trapped in a tree or on the roof near electric lines, phone your utility company. Do not take a chance of electrocuting yourself. Be aware of weather conditions when installing and working with electrical appliances. Never use electrical power tools or appliances with rain overhead or water underfoot. Use only outdoor lights, fixtures and extension cords. Plug into outlets with a GFCI. Downed power lines are extremely dangerous. If you see a downed power line, call the electric company, and warn others to stay away. If a power line hits your car while you are in it, stay inside unless the car catches fire. If the car catches fire, jump clear without touching metal and the ground at the same time.

MORE SAFETY PRECAUTIONS:

Routinely check your electrical appliances and wiring.
Hire an InterNACHI inspector. InterNACHI inspectors must pass rigorous safety training and are knowledgeable in the ways to reduce the likelihood of electrocution.
Frayed wires can cause fires. Replace all worn, old and damaged appliance cords immediately.
Use electrical extension cords wisely and don’t overload them.
Keep electrical appliances away from wet floors and counters; pay special care to electrical appliances in the bathroom and kitchen.
Don’t allow children to play with or around electrical appliances, such as space heaters, irons and hair dryers.
Keep clothes, curtains and other potentially combustible items at least 3 feet from all heaters.
If an appliance has a three-prong plug, use it only in a three-slot outlet. Never force it to fit into a two-slot outlet or extension cord.
Never overload extension cords or wall sockets. Immediately shut off, then professionally replace, light switches that are hot to the touch, as well as lights that flicker. Use safety closures to childproof electrical outlets.
Check your electrical tools regularly for signs of wear. If the cords are frayed or cracked, replace them. Replace any tool if it causes even small electrical shocks, overheats, shorts out or gives off smoke or sparks.
In summary, household electrocution can be prevented by following the tips offered in this guide and by hiring an InterNACHI inspector.

Reprinted with permission from the International Association of Certified Home Inspectors (InterNACHI).

Clean the Exterior Condenser Unit and Components

The exterior condenser unit is the large box located on the side of the building that is designed to push heat from the inside of the building to the outdoors. Inside of the box are coils of pipe that are surrounded by thousands of thin metal “fins” that allow the coils more surface area to exchange heat. Follow these tips when cleaning the exterior condenser unit and its inner components — after turning off power to the unit!

Remove any leaves, spider webs and other debris from the unit’s exterior. Trim foliage back several feet from the unit to ensure proper air flow.
Remove the cover grille to clean any debris from the unit’s interior. A garden hose can be helpful for this task.
Straighten any bent fins with a tool called a fin comb.
Add lubricating oil to the motor. Check your owner’s manual for specific instructions.
Clean the evaporator coil and condenser coil at least once a year. When they collect dirt, they may not function properly.
Inspect the Condensate Drain Line

Condensate drain lines collect condensed water and drain it away from the unit. They are located on the side of the inside fan unit. Sometimes there are two drain lines—a primary drain line that’s built into the unit, and a secondary drain line that can drain if the first line becomes blocked. Homeowners can inspect the drain line by using the following tips, which take very little time and require no specialized tools:

Inspect the drain line for obstructions, such as algae and debris. If the line becomes blocked, water will back up into the drain pan and overflow, potentially causing a safety hazard or water damage to your home.
Make sure the hoses are secured and fit properly.
Clean the Air Filter

The air filter slides out for easy replacement

Air filters remove pollen, dust and other particles that would otherwise circulate indoors. Most filters are typically rectangular in shape and about 20 inches by 16 inches, and about 1 inch thick. They slide into the main ductwork near the inside fan unit. The filter should be periodically washed or replaced, depending on the manufacturer’s instructions. A dirty air filter will not only degrade indoor air quality, but it will also strain the motor to work harder to move air through it, increasing energy costs and reducing energy efficiency. The filter should be replaced monthly during heavy use during the cooling seasons. You may need to change the filter more often if the air conditioner is in constant use, if building occupants have respiratory problems,if you have pets with fur, or if dusty conditions are present.

Cover the Exterior Unit

When the cooling season is over, you should cover the exterior condenser unit in preparation for winter. If it isn’t being used, why expose it to the elements? This measure will prevent ice, leaves and dirt from entering the unit, which can harm components and require additional maintenance in the spring. A cover can be purchased, or you can make one yourself by taping together plastic trash bags. Be sure to turn the unit off before covering it.
Close the Air Distribution Registers

Air distribution registers are duct openings in ceilings, walls and floors where cold air enters the room. They should be closed after the cooling season ends in order to keep warm air from back-flowing out of the room during the warming season. Pests and dust will also be unable to enter the ducts during the winter if the registers are closed. These vents typically can be opened or closed with an adjacent lever or wheel. Remember to open the registers in the spring before the cooling season starts. Also, make sure they are not blocked by drapes, carpeting or furniture.

In addition, homeowners should practice the following strategies in order to keep their central air conditioning systems running properly:

Have the air conditioning system inspected by a professional each year before the start of the cooling season.
Reduce stress on the air conditioning system by enhancing your home’s energy efficiency. Switch from incandescent lights to compact fluorescents, for instance, which produce less heat.
In summary, any homeowner can perform periodic inspections and maintenance to their home’s central air conditioning system.

Reprinted with permission from the International Association of Certified Home Inspectors (InterNACHI).

1. Know your rights

When you are ready to buy a home, be sure you understand your rights as a homebuyer. Knowing the process prevents you from getting scammed. Recommend seeking a knowledgeable professional like a real estate agent or a broker. Make sure that the agent you hire is licensed and has experience in buying and selling in your area of purchase.

2. Buy within you limits

Know how much you can spend on a mortgage before you look. What you want is usually different from what you need, so be practical. Make the best out of your money and ask for suggestions from those who have knowledge in real estate prices if you are getting a reasonable offer.

3. Buy a home that fits your lifestyle

The most import part of buying a house is that you can make it into a home. Buy a home that really fits your way of life and makes you feel comfortable. A good example is if you love nature, find a place that is outside the city and near parks, has a mountain view or is in close location to the beach. Personality really matters when you are finding your dream house. Always consider the kind of neighbors you will have as well.

4. Consider the future

If you are a newlywed, consider how many kids you are planning to have. This way you will know how many rooms will be needed and how much space is reasonable. Also think about the school system you are going to want your kids in and try to find a new home nearby.

5. Organize

Organize all of your documents that are need when you purchase a home as well as all your documents you receive once you purchase the home. This will help you when it comes time to paying your house payments (taxes and amortization).

Why make your home more energy efficient? Here are a few good reasons:

Federal, state, utility and local jurisdictions’ financial incentives, such as tax breaks, are very advantageous in most parts of the U.S.
It saves money. It costs less to power a home that has been converted to be more energy-efficient.
It increases indoor comfort levels.
It reduces our impact on climate change. Many scientists now believe that excessive energy consumption contributes significantly to global warming.
It reduces pollution. Conventional power production introduces pollutants that find their way into the air, soil and water supplies.
1. Find better ways to heat and cool your house.

As much as half of the energy used in homes goes toward heating and cooling. The following are a few ways that energy bills can be reduced through adjustments to the heating and cooling systems:

Install a ceiling fan. Ceiling fans can be used in place of air conditioners, which require a large amount of energy.
Periodically replace air filters in air conditioners and heaters.
Set thermostats to an appropriate temperature. Specifically, they should be turned down at night and when no one is home. In most homes, about 2% of the heating bill will be saved for each degree that the thermostat is lowered for at least eight hours each day. Turning down the thermostat from 75° F to 70°F, for example, saves about 10% on heating costs.
Install a programmable thermostat. A programmable thermostat saves money by allowing heating and cooling appliances to be automatically turned down during times that no one is home and at night. Programmable thermostats contain no mercury and, in some climate zones, can save up to $150 per year in energy costs.
Install a wood stove or a pellet stove. These are more efficient sources of heat than furnaces.
At night, curtains drawn over windows will better insulate the room.
2. Install a tankless water heater.

Demand water heaters (tankless or instantaneous) provide hot water only as it is needed. They don’t produce the standby energy losses associated with storage water heaters, which will save on energy costs. Demand water heaters heat water directly without the use of a storage tank. Therefore, they avoid the standby heat losses required by traditional storage water heaters. When a hot water tap is turned on, cold water travels through a pipe into the unit. Either a gas burner or an electric element heats the water. As a result, demand water heaters deliver a constant supply of hot water. You don’t need to wait for a storage tank to fill up with enough hot water.

3. Replace incandescent lights.

The average household dedicates 11% of its energy budget to lighting. Traditional incandescent lights convert approximately only 10% of the energy they consume into light, while the rest becomes heat. The use of new lighting technologies, such as light-emitting diodes (LEDs) and compact fluorescent lamps (CFL), can reduce energy use required by lighting by 50% to 75%. Advances in lighting controls offer further energy savings by reducing the amount of time lights are on but not being used. Here are some facts about CFLs and LEDs:

CFLs use 75% less energy and last about 10 times longer than traditional incandescent bulbs.
LEDs last even longer than CFLs and consume less energy.
LEDs have no moving parts and, unlike CFLs, they contain no mercury.
4. Seal and insulate your home.

Sealing and insulating your home is one of the most cost-effective ways to make a home more comfortable and energy efficient. A tightly sealed home can improve comfort and indoor air quality while reducing utility bills. An energy auditor can be hired to assess envelope leakage and recommend fixes that will dramatically increase comfort and energy savings.

The following are some common places where leakage may occur:

electrical outlets;
mail slots;
around pipes and wires;
wall- or window-mounted air conditioners;
attic hatches;
fireplace dampers;
weatherstripping around doors;
baseboards;
window frames; and
switch plates.
Because hot air rises, air leaks are most likely to occur in the attic. Homeowners can perform a variety of repairs and maintenance to their attics that save them money on cooling and heating, such as:

Plug the large holes. Locations in the attic where leakage is most likely to be the greatest are where walls meet the attic floor, behind and under attic knee walls, and in dropped-ceiling areas.
Seal the small holes. You can easily do this by looking for areas where the insulation is darkened. Darkened insulation is a result of dusty interior air being filtered by insulation before leaking through small holes in the building envelope. In cold weather, you may see frosty areas in the insulation caused by warm, moist air condensing and then freezing as it hits the cold attic air. In warmer weather, you’ll find water staining in these same areas. Use expanding foam or caulk to seal the openings around plumbing vent pipes and electrical wires. Cover the areas with insulation after the caulk is dry.
Seal up the attic access panel with weatherstripping. You can cut a piece of fiberglass or rigid foam board insulation the same size as the attic hatch and glue it to the back of the attic access panel. If you have pull-down attic stairs or an attic door, these should be sealed in a similar manner.
5. Install efficient shower heads and toilets.

The following systems can be installed to conserve water usage in homes:

low-flow shower heads. They are available in different flow rates, and some have a pause button which shuts off the water while the bather lathers up;
low-flow toilets. Toilets consume 30% to 40% of the total water used in homes, making them the biggest water users. Replacing an older 3.5-gallon toilet with a modern, low-flow 1.6-gallon toilet can reduce usage an average of two gallons-per-flush (GPF), saving 12,000 gallons of water per year. Low-flow toilets usually have “1.6 GPF” marked on the bowl behind the seat or inside the tank;
vacuum-assist toilets. These types of toilets have a vacuum chamber which uses a siphon action to suck air from the trap beneath the bowl, allowing it to quickly fill with water to clear waste. Vacuum toilets are relatively quiet; and
dual-flush toilets. Dual-flush toilets have been used in Europe and Australia for years, and are now gaining in popularity in the U.S. Dual-flush toilets let you choose between a 1-gallon (or less) flush for liquid waste, and a 1.6-gallon flush for solid waste. Dual-flush 1.6-GPF toilets reduce water consumption by an additional 30%.
6. Use appliances and electronics responsibly.

Appliances and electronics account for about 20% of household energy bills in a typical U.S. home. The following are tips that will reduce the required energy of electronics and appliances:

Refrigerators and freezers should not be located near the stove, dishwasher or heat vents, or exposed to direct sunlight. Exposure to warm areas will force them to use more energy to remain cool.
Computers should be shut off when not in use. If unattended computers must be left on, their monitors should be shut off. According to some studies, computers account for approximately 3% of all energy consumption in the United States.
Use efficient “Energy Star”-rated appliances and electronics. These devices, approved by the DOE and the EPA’s Energy Star Program, include TVs, home theater systems, DVD players, CD players, receivers, speakers and more. According to the EPA, if just 10% of homes used energy-efficient appliances, it would reduce carbon emissions by the equivalent of 1.7 million acres of trees.
Chargers, such as those for laptops and cell phones, consume energy when they are plugged in. When they are not connected to electronics, chargers should be unplugged.
Laptop computers consume considerably less electricity than desktop computers.
7. Install daylighting as an alternative to electrical lighting.

Daylighting is the practice of using natural light to illuminate the home’s interior. It can be achieved using the following approaches:

skylights. It’s important that they be double-pane or they may not be cost-effective. Flashing skylights correctly is key to avoiding leaks;
lightshelves. Light shelves are passive devices designed to bounce light deep into a building. They may be interior or exterior. Light shelves can introduce light into a space up to 2½ times the distance from the floor to the top of the window, and advanced light shelves may introduce four times that amount;
clerestory windows. Clerestory windows are short, wide windows set high on the wall. Protected from the summer sun by the roof overhang, they allow winter sun to shine through for natural lighting and warmth; and
light tubes. Light tubes use a special lens designed to amplify low-level light and reduce light intensity from the midday sun. Sunlight is channeled through a tube coated with a highly reflective material, then enters the living space through a diffuser designed to distribute light evenly.
8. Insulate windows and doors.

About one-third of the home’s total heat loss usually occurs through windows and doors. The following are ways to reduce energy lost through windows and doors:

Seal all window edges and cracks with rope caulk. This is the cheapest and simplest option.
Windows can be weatherstripped with a special lining that is inserted between the window and the frame. For doors, weatherstrip around the whole perimeter to ensure a tight seal when closed. Install quality door sweeps on the bottom of the doors, if they aren’t already in place.
Install storm windows at windows with only single panes. A removable glass frame can be installed over an existing window.
If existing windows have rotted or damaged wood, cracked glass, missing putty, poorly fitting sashes, or locks that don’t work, they should be repaired or replaced.
9. Cook smart.

An enormous amount of energy is wasted while cooking. The following recommendations and statistics illustrate less wasteful ways of cooking:

Convection ovens are more efficient that conventional ovens. They use fans to force hot air to circulate more evenly, thereby allowing food to be cooked at a lower temperature. Convection ovens use approximately 20% less electricity than conventional ovens.
Microwave ovens consume approximately 80% less energy than conventional ovens.
Pans should be placed on the correctly-sized heating element or flame.
Lids make food heat more quickly than pans that do not have lids.
Pressure cookers reduce cooking time dramatically.
When using conventional ovens, food should be placed on the top rack. The top rack is hotter and will cook food faster.
10. Change the way you wash your clothes.

Do not use the “half load” setting on your washer. Wait until you have a full load of clothes, as the “half load” setting saves less than half of the water and energy.
Avoid using high-temperature settings when clothes are not that dirty. Water that is 140 degrees uses far more energy than 103 degrees for a “warm” setting, but 140 degrees isn’t that much better for washing purposes.
Clean the lint trap before you use the dryer, every time. Not only is excess lint a fire hazard, but it will prolong the amount of time required for your clothes to dry.
If possible, air-dry your clothes on lines and racks.
Spin-dry or wring clothes out before putting them into a dryer.
Homeowners who take the initiative to make these changes usually discover that the energy savings are more than worth the effort. However, you should consider that inspectors can make this process much easier and perform a more comprehensive assessment of energy saving potential than you can.