What will I learn about: why buying a home is a relatively safe investment that allows you to control a large asset with a small down payment while enjoying the freedom to personalize your space?

Discover why buying a home is a relatively safe investment that allows you to control a large asset with a small down payment while enjoying the freedom to personalize your space.

What will I learn about: the importance of neighborhood conformity to maximize resale value, as unusually large or unique houses in small-house suburbs tend to appreciate much more slowly?

Understand the importance of neighborhood conformity to maximize resale value, as unusually large or unique houses in small-house suburbs tend to appreciate much more slowly.

What will I learn about: navigate the pitfalls of new and old homes, from the risk of shoddy developer work on modern builds to the costly energy upgrades and outdated layouts of older properties?

Learn how to navigate the pitfalls of new and old homes, from the risk of shoddy developer work on modern builds to the costly energy upgrades and outdated layouts of older properties.

What will I learn about: the requirements for securing a favorable mortgage by proving your financial stability and providing a 20 percent down payment to lock in lower interest rates?

Master the requirements for securing a favorable mortgage by proving your financial stability and providing a 20 percent down payment to lock in lower interest rates.

What will I learn about: how to gain negotiation leverage during a home visit by dressing casually to disguise your financial status and asking how long the property has been on the market to identify overpriced homes?

Find out how to gain negotiation leverage during a home visit by dressing casually to disguise your financial status and asking how long the property has been on the market to identify overpriced homes.

Buying Your First Home

Nolo's Essential Guide

Ilona Bray, Alayna Schroeder and Marcia Stewart

★ 4.0 / 5(120 ratings)

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Categories:

Money & Investments

If You're Curious About These Questions...

You should listen to this audiobook

💡Did you know that making the 'right' offer involves much more than just the price you’re willing to pay?
💡What’s the secret to navigating a home inspection so you never end up stuck with a property's hidden financial burdens?
💡Are you curious about the specific, common blunders that cause most first-time real estate deals to fall through at the very last second?

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Key Takeaways from Buying Your First Home

✓Discover why buying a home is a relatively safe investment that allows you to control a large asset with a small down payment while enjoying the freedom to personalize your space.
✓Understand the importance of neighborhood conformity to maximize resale value, as unusually large or unique houses in small-house suburbs tend to appreciate much more slowly.
✓Learn how to navigate the pitfalls of new and old homes, from the risk of shoddy developer work on modern builds to the costly energy upgrades and outdated layouts of older properties.
✓Master the requirements for securing a favorable mortgage by proving your financial stability and providing a 20 percent down payment to lock in lower interest rates.
✓Find out how to gain negotiation leverage during a home visit by dressing casually to disguise your financial status and asking how long the property has been on the market to identify overpriced homes.

Learning Tools

Reinforce what you learned from Buying Your First Home

Mind Map

Buying Your First Home

Benefits of Homeownership+

Selecting the Right Property+

Financing with Mortgages+

Visiting Prospective Homes+

Inspections & Avoiding Scams+

Making a Smart Offer+

Quiz — Test Your Understanding

Question 1 of 9

Why does the text argue that real estate is a unique and advantageous investment opportunity?

A. It guarantees a steady, double-digit annual return regardless of economic downturns.
B. It allows you to control a large, valuable asset by paying a small upfront lump sum.
C. It does not require any maintenance or upkeep compared to renting an apartment.
D. It is the only investment that is completely immune to market fluctuations and depreciation.

Question 2 of 9

How does the concept of 'conformity' affect a home's resale value according to the book?

A. Houses built with identical floor plans appreciate much faster than custom-built homes.
B. Neighborhoods governed by strict Homeowner Associations generally have lower property values.
C. Unique or overly large homes in a neighborhood of smaller houses appreciate more slowly because they don't match buyer expectations.
D. Older homes must be updated to conform to modern energy standards before they can legally be resold.

Question 3 of 9

Following the recent housing meltdown, how have mortgage lenders generally adjusted their financing strategies?

A. They now require borrowers to finance 100 percent of the home's purchase price to maximize interest.
B. They exclusively offer fixed interest rates to protect against future market crashes.
C. They generally prefer financing only 80 percent of the purchase, requiring a 20 percent down payment.
D. They no longer use the purchased property as collateral for the loan.

Question 4 of 9

Why does the book suggest dressing casually when visiting a prospective home?

A. To ensure you can comfortably inspect tight, dirty spaces like attics and basements.
B. To avoid signaling to the seller's agent that you are wealthy and can easily afford the full asking price.
C. Because formal attire makes you seem unapproachable to the current neighbors.
D. To blend in with other prospective buyers and avoid drawing attention to your interest in the property.

Question 5 of 9

What is the book's stance on the legal information disclosures provided by home sellers?

A. They are standardized federally and provide a complete, reliable picture of the home's condition.
B. They should be trusted completely, as sellers face severe criminal penalties for any minor omissions.
C. They are highly detailed across all states, making independent inspections largely unnecessary.
D. They should be approached skeptically because the detail and quality of required information vary significantly by state.

Question 6 of 9

When evaluating a staged home, what specific detail does the text recommend checking to spot superficial makeovers?

A. Whether the lamps actually work or are merely decorative and placed far from electrical outlets.
B. If the carpets have been professionally cleaned or merely vacuumed to look new.
C. Whether the paint on the interior walls perfectly matches the exterior trim of the house.
D. If the seller has left personal family photographs on the mantelpiece to create an emotional connection.

Question 7 of 9

What should a buyer do to ensure a thorough and reliable professional home inspection?

A. Rely entirely on the expert reports provided by the seller to save time and money.
B. Assume that a standard $200 inspection will automatically cover every hidden piece of the house.
C. Hire an independent inspector, specify expectations beforehand, and plan to spend time with them during the inspection.
D. Trust an inspector who claims to have thoroughly checked the entire property in under an hour.

Question 8 of 9

How does the book describe the dynamics of making an offer in a 'hot market'?

A. Buyers can safely offer significantly below the asking price because sellers are desperate.
B. Sellers often set very low asking prices to encourage potential buyers to bid each other up.
C. Properties typically sit on the market for several months before receiving any offers.
D. Buyers have maximum leverage to demand that the seller cover all closing costs and inspection fees.

Question 9 of 9

According to the actionable advice in the summary, how long should a potential buyer realistically allow themselves to study the market and purchasing process?

A. One to two weeks
B. One to three months
C. Six months to a year
D. Two to three years

Buying Your First Home — Full Chapter Overview

1Recommendation
21 — Buying a home is a smart choice, and there’s no reason to shy away from it.
32 — Choose the right neighborhood, and decide whether an older or newer home suits you.
43 — A mortgage is the key to financing your home.
54 — For a successful home viewing, dress appropriately and ask the right questions.
65 — Look for potential problems yourself, then hire an independent inspector to investigate further.
76 — To avoid scams, see beyond the polished finish realtors present.
87 — A professional inspection is essential before you make an offer.
98 — If you like the home, it’s time to make an offer.
109 — Final summary

Buying Your First Home Summary & Overview

Nolo’s Essential Guide to Buying Your First Home (2014) tells you everything you need to know when you’re in the real estate market for the first time. These blinks lay out the dos and don’ts of buying your first home, from getting a successful inspection, to negotiating the price and making the right offer.

Who Should Listen to Buying Your First Home?

Tenants tired of wasting their money on rent and ready to buy their first home
Potential investors with money to put into real estate
Anyone who wants to avoid the most common mistakes when buying property

About the Author: Ilona Bray, Alayna Schroeder and Marcia Stewart

Ilona Bray is an attorney and the author of several books on real estate, including The Essential Guide for First-Time Homeowners and Selling Your Home: Nolo’s Essential Guide.

Alayna Schroeder is a California-based lawyer, with legal experience ranging from corporate law to the US Peace Corps.

Marcia Stewart is the author and editor of multiple Nolo real estate books, including the best seller Every Landlord’s Legal Guide.