If you have reviewed my Installment Guide entitled “How to Succeed at Real Estate” which has been published here at AC then you have a good idea of what is involved.  If you have purchased a house before you also have a good idea of what is involved.  This is meant to help the beginner out, who is frantically looking for their dream house, that they can afford, and that makes their jaw drop when they see it. 

Unlike investment property, which was discussed at length in the Installment Guide, the task of purchasing a home for yourself tends to be very personal.  While purchasing property to invest, your not so inclined to worry if the property only has 1.5 bathrooms, where if you want 2 bathrooms minimum that is likely to be a turnoff.  This is completely normal.  While you will settle for less than perfect houses to invest in, you should make sure the house you choose for your personal self, is either perfect as-is or can be easily modified to suit your taste. 

Not every piece of property you look at will make you start dreaming of moving day, however the property that you make an offer on should do just that.  In investment property you are told not to become emotionally attached, that by doing so will cause you to overpay for the property.  However, this is often unavoidable when looking for property for personal use.  Most people when looking at property for personal use try to imagine their furniture fitting in, and which child would have which room, which room makes the best office.  Remember this and try to control the urge to offer too large a price. 

If you are smart, you will carefully examine all of your methods to purchase the house.  You may be able to use some of the methods for financing that I suggested in the Installment Guide to your benefit, only difference is your emotional attachment to the property.  You still must make an offer, and complete closing once an offer is accepted.  However, you need to be certain that the house is what you want.  Most people cannot afford to move every few years.  Most people are also not willing to do massive renovations to their own personal home before they can move in. 

What this means is that unless you are looking forward to a renovation project in your home, you should probably avoid distressed properties.  If you do select one, choose carefully a home that will not quickly become unaffordable or is in a bad neighborhood.  I once found a stunning home in a Knoxville neighborhood.  It was incredible a five bedroom house with three bathrooms.  The price was even better it was only $22,000 with owner financing.  I loved this house immensely. 

The house was perfect so I thought.  Upon looking closer inside, the walls all needed serious repair, the basement garage had some major issues, and the electrical was messed up through out, the hardwood floors that would look stunning were also in need of serious TLC.  It was an amazing house for someone who had the time and energy to fix it.  I however did not, especially after stopping an officer to ask about the neighborhood.  Apparently, the neighborhood was horrible, and the officer would not even roll his window down to talk to my husband and I!  We had to talk to him through his window!  This turned me off the property completely.  Between the repairs that would have been needed, as well as the neighborhood, I no longer cared how stunning the house would be.  I do still miss the idea of that house; it was an incredible purchase for someone.  However, I was not that someone. 

Keep in mind my experience as you look around.  You are likely to cross a house similar in your house-hunting prowl.  Try to keep a rational head and look at all aspects of the property.  Look at it as an investor first and foremost for the area and price.  This will help you negotiate the best price.  Once you have discussed pricing a bit, you can look at it a bit more sentimental.  People who are purchasing for themselves will almost always pay more for the property than they would if they are purchasing it for investment purposes only. 

Do not discount the power of the lease/purchase option when looking to buy either, this is something that can save considerable amounts of money upfront and allow you to buy a nicer house than you could otherwise afford.  There is nothing wrong with this, enjoy the benefits of your knowledge and happy house hunting.