Buying that dream home can be incredibly rewarding. However, if you don’t go into it educated and knowledgeable, you might just find that your experience is less than stellar. What should you know about buying residential real estate? Here are four of the most important tips any would-be homeowner should know prior to buying any home (or even starting the search for a home).

Get Your Insurance First

Most homeowners know that having home insurance is a requirement. However, few understand that insurance coverage needs to be in place before you can get a loan from most lenders. While you won’t need insurance prior to starting a house hunt, you will need to have a policy in place before you can finalize the purchase. That means you need to find a good insurance company with which to place your policy before you begin your home search. Having this information beforehand will help fast track the process of buying a home.

Heating And Cooling System

Having a good HVAC system is imperative – your comfort and even the health of your bank account depend on it. However, many homeowners don’t know enough about the heating and air system in the homes they want to purchase to make sure that it’s in good condition, and that it won’t cause exorbitant energy bills. Have the HVAC system professionally inspected (as part of your home inspection) prior to finalizing your purchase. Doing otherwise can cost you an immense amount of money in repairs and replacement costs.

Energy Efficiency

Energy efficiency is an incredibly important consideration and one that covers a wide range of areas. The energy efficiency of any home relies on the level of insulation, the efficiency of the home’s windows and even the type of exterior siding on the home in question. Make sure that the R-value of the home’s insulation is satisfactory, that the windows are highly efficient and that the exterior siding adds insulation to the home as well. It’s imperative when buying residential real estate that you work with a home inspector who will check all of these areas and give you accurate, immediate feedback.

Use A Home Inspector

A home inspection is more than just a good idea – it’s an essential part of ensuring that the home you want to buy is in good condition and that there are not hidden costs lurking to strike when you least expect it. Of course, not all home inspectors are worth your time, and it can be very difficult for a home buyer to tell if one inspector is better than another. Your real estate agent should be able to give you information on the top area inspectors. Chances are good that he or she has a preferred inspector they use for most of their sales, and listening to your real estate agent’s advice is a very wise decision.

With the information above, you can buy a new home with a bit more peace of mind about your investment.

Brad Schmett is Broker Associate at Luxury Homes by Keller Williams in La Quinta, California. Brad is an expert, helping sellers best position their real estate for sale – and helping buyers maximize their real estate investment. To learn more about Brad’s services and/or real estate in the La Quinta, California area, visit http://LaQuintaRealEstateInfo.com/

Distressed sellers are owners who have run into some sort of hardship and are no longer able to pay their mortgages. They are faced with the stress of that looming deadline. The one that requests they pay off what they owe or risk losing their home to foreclosure.

As a real estate investor, these sellers are your closest allies. They are willing to do whatever it takes to get their homes sold and save their credit. As an investor the largest hurdle you will face is getting the distressed seller to respond to you. Likely if they are behind on their home payments, they have buried their head in the sand.

The avoid the mortgage lender like the plague and refuse to answer phone calls from those willing to offer a helping hand. Unfortunately they receive loads of unsolicited phones calls from scammers and frauds that want to take advantage of their dire situation. It’s your job to tap into those emotions that will trigger the best response.

It’s best to reach sellers who in financial trouble when things reach the point of no return. This occurs after they receive legal notice in the mail known as Notice of Default. This is a written notification from the lender that lets the owner know they will soon face legal action. It sort of states, “Pay up or else.” The home owner is now facing the real threat of eviction.

At this point the home owner is in a terribly desperate situation and it’s your job as an investor to completely understand what they are going through. Not just the financial burden, but the emotional one as well. Their pride is hurt and their self-esteem is shot. Most real estate investors fail to understand these emotions. They are chasing the deal rather than finding a way to get a desperate seller out of a dire situation.

When you structure deals with owners of distressed property, it’s your job to put their best interest in writing. The bank is already walking all over this seller. Don’t add to his burden by treating him like a failure. Understand that when you purchase distressed homes, you are working with a real human being who is suffering hardship. Keep this in mind throughout the duration of your transaction and things will work in your favor.

Also make sure that when working with distressed sellers all parties involved agree to do the same. Get your realtor and your private mortgage lender on board when it comes to helping out the seller. The more value you put into the transaction, the more value you will get out of it. Remember that your best sources of new leads are referrals. If you help someone out of a bad situation and do so with dignity, they will refer others to you who are in the same situation.

Written by Kellie Davis of Capital Fund I. I invite you to learn more about working with distressed sellers as a real estate investor.