1ST TIME HOMEBUYER MISTAKES

FOUR FIRST-TIME HOMEBUYER MISTAKES

Home prices are down more than 15 percent from this time last year, which is good for buyers . . . but prices are also UP 4 percent compared to early this year, which is good news for SELLERS.

Great deals are still out there, but they might not be for long . . .

If you're thinking of buying property while prices are still low, make sure you know what you're doing. Here are four mistakes first-time homebuyers make . . .

1.) FALLING IN LOVE WITH THINGS THAT DON'T ADD VALUE. A lot of people see an in-ground swimming pool and immediately want to sign on the dotted line. But swimming pools are expensive to maintain and don't really add that much value.

So, don't get attached to that house by the freeway just because it has a wet bar or a pool table.

2.) OVERLOOKING POTENTIAL REPAIRS. If something in your APARTMENT breaks, you call the landlord. But once you buy a home, YOU'RE on the hook. So keep an eye out for central air units, water heaters, and other pricey items that look old.

3.) OVERESTIMATING THE TAX SAVINGS. You CAN take a tax deduction on the interest you pay for your mortgage, but remember . . . when you RENT, you don't have a mortgage at all . . . so you don't have to pay interest on a gigantic loan.

4.) NOT RESEARCHING THE NEIGHBORHOOD. Check out the school districts . . . even if you don't have kids. It affects the resale value, plus, you might decide to have kids down the road. Also, it's a good idea to knock on some doors.

Hopefully, your potential neighbors aren't FREAKS, but it's better to know NOW than LATER. Plus, no one knows the area better than the people who live in it. They can answer most of the questions you have . . . and some you never even thought of. (AskMen.com)