I think the first topic to address will be that which I hear so very often:

"Hey Alex, how do I go about buying a house?"

I'll try and keep it simple, leaving big picture market focus out of it for another slew of posts.

1. Get a buyer's agent for real estate. There is no cost to you and they should work tirelessly (or some proximation thereof) in order to find a suitable house. Remember that the seller pays the real estate commission fees in most Canadian and US jurisdictions; check what the rules or conventions are in your area.

2. Do your own research, find what works for you. Check out www.mls.ca for Canada and www.realtor.com for the United States and check out what's in your area. Agents will try and find you a good fit, but they do have other clients!

3. Look into a good home inspector. Never, ever, ever buy a home without a home inspector. There are far too many laibilities inherent in buying a house to risk it otherwise. It will be the best $300 you ever spent. Ensure that the inspector is accredited with the provincial or state home inspection body. Ask for references if you are unsure, and make sure to ask any and all questions while the inspection actually takes place. Typically hire the inspector for the job only when you have narrowed it down to your last potential house/condo or two.

4. Ensure you have enough cash for a downpayment! In Canada, the minimum you need down is 5%, but it may vary from state to state in the United States.

5. Find a good real estate lawyer. His or her fees should be approximately $600-$1000 plus small dispersements. Any more than that and you are paying on the rather high end, unless you are purchasing some sort multi-unit building.

6. Check out the area for potential value adding or value decreasing factors: these include:

     a. Transportation. Look for adequate transportation into the area or potential augmentations. Check with youe municipality's planning department for planned works in the area. These are usually available online. If it's something close by that will enhance accessibility to a remote region, this is typically a good thing. Should it be a 4-lane express way in front of your prospective property - WATCH OUT! This will decrease value! Be aware of what will run through your new home!

b.     Local Economy: Ensure that there are more than one major employer and that the region or neighbourhood economic outlook is positive. You can check for the median and average incomes and demographic distribution. Ensure that the neighbourhood profile matches what your desired lifestyle will be. You likely would not want to be a single professional in a rural community or raising a family in a low-income urban area with high crime. House prices will reflect the demograhics of the region

c.     Zoning: Check with the municipality if there will be zoning changes to your area or if it has recently undergone such a change. A good realtor will be able to help you with this. A bad one will say they don't have or can't find that data; it's a weak and uneducated cop-out if they do. Find another agent. Zoning regulations stipulate what can be built in the area. If you don't check, you could be stuck beside a 30 storey high rise construction in your nice new single family home.

d.     Amenities: These include, but are not limited to schools, recreation facilities, shopping, and business areas. You want to be able to have most things within a 5 minute drive for maximum convenience and resale value. If there is large planned expansion in things you don't want, don't buy. If there businesses are moving out of the area, there is likely a reason for it.

7. Get a pre-approval for a mortgage and learn about the differnet types of mortgages. Don not ever sign a real estate deal or even progress to the offer stage without knowing how much you can afford. This is not determined by YOUR standards and estimates, but by the bank. They use risk and income factors in determining your elligibility for a large loan. I will post more about the nuances later, but any reputable bank or mortgage broker will be able to tell you what you can and can afford. Since interest rates are abysmally low in the US and Canada, there is nowhere for them to go but up. Try and lock into a fixed rate at between 4.5% and 5.5%. If you do any business already with a bank and have a good credit rating, you will likely be able to negotiate a slightly lower than advertised (or 'posted') rate. Always ask - all they can do is say no!

8. Ensure you save at least 1.5% extra cash for closing costs. These include such items as legal fees (already mentioned: $600-$1000), land transfer taxes (1%-2% of property value, depending on your municipality or any extra taxes in the area/region), heating oil fill-up, and paying back the balance of prepaid property taxes to the seller. Do no be caught short for these expenses! You could run into significant legal trouble if, on the day of closing, you are unable to cut that final cheque to the lawyer for the downpayment + closing costs!

Hopefully, that will give you some ammunition with which to work. Stay tuned for more in-depth posts.

Cheers.