Make a list that includes your price range, all the items you must have in your home, along with the items you don’t want. Take it with you whenever you look at homes, so you don’t get sidetracked.

You will want to thoroughly research the real estate values in your area. You need to know what people are asking for their homes, and most importantly, what they are selling for. You want to be on the lookout for and avoid areas that are experiencing depreciation in value.

Although you certainly don’t have to use one, the services of a good real estate agent can be quite valuable during this stage. They can pull up all of this information in minutes by pushing a few buttons on their computer.

Once you have a home that you are interested in, you need to find out more information. There are several questions that you must ask the seller before you start any negotiations. You need to know as much as possible about the seller’s position and motivation.

1. Why are you selling?

The answer to this question will tell you a lot about the seller. Everyone selling their home has a reason. The seller may have been transferred, bought another home, be going through a divorce, or need the cash to pay off debts. All of these things can be to your advantage when negotiating!

2. Are there any defects or structural problems with the house?

Watch the seller very carefully when you ask this question. If they look away or get nervous, HIT THE ROAD! Most states now have mandatory property disclosure laws that require the seller to fully disclose any problems with the property.

3. How long has the home been on the market?

If the home has been on the market for many months, you need to find   out why. Is it simply because they are asking too much for it, or are there much deeper problems? Also, the seller may be more anxious to sell as the months go by - a big plus for you.

4. Are you offering any special financing or assistance?

The seller may have an assumable loan, or be willing to finance the purchase and carry the mortgage themselves. They also could pay some of your loan costs or points to help you get a lower interest rate.

5. Are there any repairs you were planning on doing?

This question is similar to number 2, but still needs to be asked. The  answers to this question can give you valuable insight as to how the home has been maintained, and also give you some negotiating leverage.

When you have answers to these questions, you will have a good feel for the sellers situation and the house itself. You’ll be in a position to decide if you want to move forward with the house or not.