Nolo’s Real Estate Tips for Home Buyers

A recent poll of residents of the world's eight richest cities reveals that over 40% of Tokyo's residents don't want to sacrifice a convenient lifestyle to prevent global warming. While these results may seem startling, consider that the average house size in Tokyo is 64.5 square meters, or 694 square feet (not to mention that many residents probably take public transportation to work, and drive cars that put American gas guzzlers to shame). To really make a positive environmental impact, those of us who are quick to pat ourselves on the back for our eco-friendliness must think beyond bringing our own bags to the store and driving hybrid vehicles.

And there's no better time to think about these issues than when buying a home, which leaves a (literally) big footprint. While some features -- energy efficient appliances, CFL light bulbs -- can be added later, some "green" features are permanent. Consider these important factors:

• The size of the home. A few months back, I read an article about a woman in California's Central Valley who installed solar panels on the 3,000 square foot home she lived in, apparently alone. She was quite smug about her positive environmental impact. But she could have had done even better by choosing a smaller home that took fewer resources to build and could be heated and cooled more efficiently.

• The age of the home. Older homes sometimes don't have energy saving features, but can often be adapted to include them. Two years ago I had better insulation sprayed into my attic; it almost paid for itself with the rebate from my utility company, not to mention my lower heating and cooling bills. Again, fewer natural resources are spent when an old home is updated than when a new one is built.

• The size of the lot. A large grassy lot could mean a great place for dogs and kids to play, or it could mean heavy water use, toxic weed killers, and hours of upkeep time. If you don't buy more lot space than you need, you'll save yourself hassle, money, and environmental impact to boot.

According to a recent article found at Inman News, Realtors® are making less this year than they did last. Those with two years of experience or less fared the worst, while those with 16 or more years of experience fared best.

Given the state of most real estate markets, these results aren't surprising. Experienced agents know what they're doing, so they know how to find business and get satisfied return customers. Even though they may be closing fewer transactions then they did last year, and even though each of those transactions may be worth a little less, they've weathered down markets before and will probably come out alright on the other side.

This is all good news if you're a buyer. After all, most agents aren't struggling to get enough listings, they're struggling to find buyers to purchase them. That puts buyers in a prime position to get the best possible service. Here are a few tips on what to look for:

• Personal service. As veteran Realtor® Mark Nash explained to me, the best personal service often comes not from the top producing agents, but the midrange producers. That's because top producers may have assistants that show you homes, answer your calls, and might handle everything up to writing the offer. As a result, the experienced agent or broker knows less about your needs and whether the home you're considering meets them. Make sure the person you hire is with you every step of the way.

• Experience and expertise. Veteran agents have years of experience, but you want to make sure they've been in your current market long enough to know the ins and outs. Also, ask about special certifications -- they may be an indicator of specific experience and a commitment to the profession.

• Lower fees. Though the seller's agent traditionally gets paid a 5-6% commission that he or she splits with the buyer's agent, there's nothing dictating these amounts. Don't be shy about negotiating for less, especially if you're thinking about buying a listing from the agent's brokerage. If this isn't your first purchase and you're staying in the area, you may be able to get a discount if you list your old home and buy a new one using the services of the same agent.

I must admit--I have absolutely no intention of moving anytime soon, but every now and then, I look at what's available. Just the other day I found a house that looked promising. For its size and location, it's underpriced by at least 10%. My interest piqued, I scrolled through the pictures. A pool. Ugh. I don't want a pool. (I promise, I'm not buying anytime soon. Even if I am picturing myself in each house I look at.)

It got me thinking about the buzz I hear now and again--does a pool add value? And the resounding answer? It depends. I grew up in the desert community of Lancaster, California--almost every house had one. But the house I was looking at is in a cooler, more eco-conscious northern California city. Does a pool add value in Lancaster? Yes. Does it add value where I live now? Probably not.

That's not the end of the story, of course. Even if you don't want a pool, a pool need not be forever. I have an aunt whose pool provided me with years of childhood enjoyment (it had the old-fashioned rough bottom, and my siblings and I stayed in until our toes bled, but it was worth it). Now in her 70s, she thought about moving out of the house so she didn't have to care for the pool anymore. Instead, she had it removed. Sure, it cost several thousand dollars, but it was a lot cheaper than the transaction costs of selling the house and moving to a place without one.

If you're house hunting and come across a house with a pool (or other undesirable feature) you don't want, don't automatically strike it from the list. Treat it like you would any other potential fixer-upper: weigh the cost of the fix-up (both in actual cost, and in the hassle and stress a project may bring) against the value you'll gain as a result.

Alayna Schroeder