A home plumbing job can quickly go wrong. Here are 10 rules for avoiding disaster.

By Roy Berendsohn of Popular Mechanics

Be a smart homebuyer and don’t take sellers at their word. If they’re holding something back, it could cost you.

By Amy Hoak of MarketWatch

As an example, he referenced a case in Colorado. At an open house the buyers attended — and at the walk-through before closing — candles and cookies scented the home. But when the buyers moved in, there was a strong smell of cat urine throughout the house. They called their attorney, a strongly worded letter was written, and the sellers provided money to replace padding and carpeting, Crowley said.

Crowley suspects the buyer could have easily proved a cover-up in court. “The people weren’t willing to gamble. They did pay for it.”

Michelle McLean also discovered an issue after purchasing a home in Vernal, Utah. It had a septic tank, but she found out only after closing she was required to hook it up to the city’s sewer line. Clark said the fact could have been specified within Utah’s standard seller disclosures.

McLean contacted her real-estate agent, and the seller ended up paying for the hook-up.

Catch before closing
You’ll have a much easier time getting problems taken care of prior to the completion of the sale. Get a professional home inspection to reveal issues, but don’t stop there.

The more information you can request, the better off you are, Garfinkel said. “It puts you in a better position to avoid those kinds of problems,” he said.

Before closing, Clark and a client of his discovered there was a history of sewer problems at one particular home, which the seller didn’t disclose. The seller was confronted about it, and he spent between $5,000 and $7,000 to get it repaired.

“We talked to the neighbors,” Clark said, and one of them indicated that a tenant moved out of the home due to plumbing issues. “We hired a plumber because of that tip, to snake the sewer line with a camera. A lot of connections were broken, parts had cracked and fallen in,” he said. Roots interfered with the line as well.

Talking with neighbors that surround the property will often help turn up any big problems with a home or uncover property boundary disputes, Clark said.

All of this isn’t to say that most — or even many — sellers lie on their forms, or that the disclosures aren’t useful to buyers.

“In my mind, the two benefits of those forms are that a buyer gets information from sellers, but also buyers are reminded of the things that might be on a property,” said Ralph Holmen, the National Association of Realtors’ legal counsel. “It’s like a checklist of things to investigate.”

Remember, too, that when you’re buying an existing home it’s important to have realistic expectations, Crowley said. Know what you’re getting into, but understand that sellers might not know about a particular problem in the home. And there’s nothing to say that things won’t pop up right after you close.

“If you have unreasonable expectations, you will always find something to be disappointed with,” Crowley said. “There’s always going to be a surprise with a used home. My water heater went out the first week.”

Welcome to homeownership.

By Marilyn Lewis of MSN Real Estate

By Lisa Scherzer of SmartMoney

After a home inspection turned up everything from leaky toilets to termites, Cincinnati couple Hannah Powers and Ben Clinkinbeard thought about rescinding the $305,000 offer they’d made on a four-bedroom home. Instead, they got an estimate for the cost of repairs, and worked it out that the seller would pick up the $10,000 tab. “You can’t wash dishes and flush the toilet at the same time,” Powers, 28, says. “That’s a problem you’d think someone would mention.”

Though you may think you’ve found your dream house, no property is perfect. For buyers who signed contracts before May 1 to meet the deadline for the homebuyer tax credit, now is the time to make sure your new home isn’t hiding any defects or problems.

Some homebuyers, in the rush to meet the deadline to get the tax credit, may have overlooked a few of “these issues related to home inspection,” says Robert Lattas, a real-estate attorney in Chicago.

Here’s what you should know.

Inspection contingency
As Powers and her husband did, buyers should be sure to make the purchase contingent on a home inspection. The contingency period typically lasts a week or two. This is when the buyer should get an inspector to check the house for problems that need fixing — and to look for other obviously important information that could kill the deal. This could include things like water damage, a furnace that’s too old or flaws in the foundation.

And with the hurry to get contracts done by April 30, “I’m sure there were many contracts that did contain a post-contract inspection period,” says Alan E. Katz, a real-estate attorney with Greenfield Stein & Senior in New York.

• Video: First-time homebuyers guide

Keep in mind, however, that while a standard home inspection can be revealing, inspectors technically don’t have to check for problems with appliances, sprinkler systems, septic systems, smoke detectors, lead paint, radon, asbestos or pests. Some inspectors, who may also be engineers, can check on these details, but often they’d be considered extras.

Negotiating the repair
Many states, including Illinois and New York, require home sellers to fill out a property disclosure statement, which is supposed to note any “material defects” with the house that are known to the seller.

If the inspection uncovers a problem that wasn’t noted in the disclosure form, the buyer might — depending on how the contract clause was drafted — have the right to terminate the contract, have the problem fixed by the seller before closing or get a credit for the cost of the repair at closing, Katz says.

If the seller lied on his report — for example, he knew there were flooding issues but didn’t disclose the information — the buyer could sue. But the buyer would need to be able to convince a judge or jury that the seller knew of the material defect and did not disclose it to the buyer, Lattas says.

Most real-estate agents and attorneys representing homebuyers would recommend against letting the seller handle the repair. The risk here is that the seller will do a shoddy fix-up job. As a buyer, “I don’t want the seller to fix these issues, because I’m not aware of their quality,” Lattas says. A better alternative is to try to negotiate a repair credit as Powers and her husband did. But be aware that the contract might cap the credit amount.

Final walk-through
A standard contract typically includes a provision requiring the seller to “maintain” the property between the contract date and closing date. That means if the buyer sees a gash on the hardwood floor during the final walk-through that wasn’t there at the time of inspection, that’s considered a changed condition. “You might be able to bring this up and ask for a price abatement,” Lattas says. At that point, the seller will likely concede — he’s out of the property and presumably buying another home.

• MSN Money: Find a mortgage below 5%

Also note that every contract indicates what in the house is included in the purchase price and what’s not. Ellen Assael, a real-estate agent with ZipRealty in Westchester, N.Y., had a client who, during the final walk-through, discovered that all the air-conditioning units had been removed. Under the contract, the units were supposed to be left in the house. “There was big trouble at the closing table,” Assael says. Ultimately, the seller gave the buyers a credit.

Property permits
Did the seller add a porch to the house or renovate the kitchen? If he did, make sure you have an amended certificate of occupancy or building permit that verifies the improvements were reviewed by the municipality and done according to code.

• Find your dream home

“Sometimes owners don’t even know they need to get a permit to reflect the addition,” Katz says. Either way, buyers should have a provision in the contract that has the seller saying that the structure doesn’t violate any code. This could also affect the buyer’s ability to get bank financing. “If you don’t have a valid certificate of occupancy, the bank won’t go through with the mortgage commitment,” Katz says.

By Jason Carpenter of This Old House

Every guy needs a getaway, a place where he can go to hang out, by himself or with his buddies. Batman had his secret cave, Superman his remote Fortress of Solitude. Well, you’re not going to tunnel underground or fly off to the Arctic for your special sanctuary. But you can create the perfect hideaway within your own home. All it takes is a spare bedroom, a corner of the basement or even an attic to carve out a manly escape — especially if your idea of escaping is locking yourself in a room to listen to Miles Davis albums at floor-shaking levels, shouting encouragement to your alma mater’s football team or tinkering in the privacy of your workshop.

Slide show:  Check out these workshops and man dens

Here we present three fantasy spaces for the modern man, complete with all the gadgets and gear a guy could want (especially if money is no object). So come on in — just don’t give away the secret handshake.

1. The sports den

The guy: You haven’t quite outgrown your love for hoops or video games, and Sundays are holy to you because of pro football. Whether it’s March Madness or the latest action-movie DVD, everyone wants to watch it on your big screen.

The getaway: Your basement home theater has to be big enough to accommodate a crowd, but you don’t want to sacrifice anything in the way of sound or video quality. That means a high-definition digital projector, a 75-inch (or larger) screen and at least 5.1-channel surround-sound speakers. For comfort, you need ample plush seating, and for convenience, a built-in bar complete with taps for your favorite suds.

• Video: Check out these man caves

Setting it up right
Today’s high-quality projectors have excellent “off-angle” viewing, which means you don’t need to sit directly in front of the screen to get a sharp image. Marc Leidig, owner of Ambiance Systems in Clifton Park, N.Y., suggests mounting the projector against the back wall or in the wall cavity to avoid the distraction of a machine hanging overhead. An acoustically transparent screen, with thousands of tiny holes that allow sound to pass through, lets you install the center channel speaker of your surround system behind it, further reducing visual clutter. Leidig recommends a fixed screen rather than a retractable one. “It saves money that you can spend on other features in the room, and it performs better because it can’t move around and affect video quality.”

2. The listening room

The guy: Your tastes run more to single-malt scotch than malt liquor, and you want a sophisticated space to indulge your passions: vintage jazz, fine cigars and the occasional game of Texas hold ‘em with the guys. You’re one of the few people you know who still keep a collection of LPs and a turntable to play them on, the centerpiece of an audio system that gets pride of place in this mellow den.

The getaway: Think Edwardian library, updated for the 21st century with built-in storage for stereo equipment, sound-absorbing floor and walls, and a wireless tabletop remote control to operate everything from the music to the lighting to the thermostat.

• Design Center: Create your home theater

Setting it up right
Whether it’s in a downstairs den, a converted bedroom or the attic, the key to a good listening room is containing the sound. After all, you can’t crank up the volume if the kids are next door trying to sleep. The best method, says Utz Baldwin, president of Houston-based electronics installer AD Systems, is to build a room within a room, creating an air buffer zone to deaden sound. But if you’re not inclined to construct a high-tech listening chamber, you can install sound-baffling materials on the floor, walls and ceiling. And don’t forget to audition your speakers. “Listen to your ears, not to a salesperson,” Baldwin says. Try to position your sitting area so it creates an equilateral triangle with the speakers, and place the speakers at least a foot or two away from the side and back walls for best sound quality.

3. The wired workshop

The guy: Just because you’re not in the office doesn’t mean you’re not keeping busy. Weekends find you ensconced in a corner of the basement or in the garage, tackling projects from building flower boxes for the bay window to sharpening the lawn-mower blades in anticipation of spring.

The getaway: Since you get restless just watching other people fix stuff, the flat-panel TV is within sight of your workbench, so you can TiVo “This Old House” and cue up the segment you need. A stainless-steel fridge lets you slake hunger and thirst without tracking sawdust and motor oil into the house. Music is a must, so why not a boom box that charges your batteries? And you’re going to need your laptop to download projects from online, but a wimpy one won’t do the trick. This is a hard-working hangout. Things could get rough in here.

• MSN Lifestyle: What is a man?

Setting it up right
Where square footage is at a premium, “you need to decide if you want to maximize work space or storage space,” says Jaime Twitchell, owner of Custom Garage Systems Inc. of Bozeman, Mont. “You can run out of one or the other in a hurry.” An organized system keeps clutter in check: sports equipment and kids’ stuff in one area, yard tools in another, power tools in the workshop. “Use modular cabinet systems so you’re not stuck with one configuration as you accumulate tools and toys,” Twitchell says. Other important considerations are lighting — Twitchell recommends swapping out hot-burning incandescents for cooler, energy-efficient compact fluorescents — and ease of cleanup. An air compressor hooked to piping around the perimeter of the room comes in handy for blowing away debris (as well as pumping up bike and car tires).

 
When you knock down and rebuild a home, you face possible snags with zoning and financing.

By Steve McLinden of Bankrate.com
Q: My husband and I plan to knock down our old home and replace it with a new one on the same lot. Should I go to the bank for a construction loan or a home equity loan? The value of the current home is about $300,000. What are some of the other issues to consider with this sort of plan?

A: What you are pondering is referred to as a “knock-down rebuild.” Any number of design-and-build construction firms can handle this. Or you might opt for a construction consultant to walk you through all the options, coordinate the hiring of the contractor and the architect and contain costs.

However, whether your demo plan will work depends on how much added value you plan to create in the replacement home and, to some degree, your neighborhood’s dynamics. If you plan to downsize or build only a slightly more valuable home, the numbers probably won’t add up. The bank would rightfully be concerned that the new home might not create enough additional value for it to recoup its money should you default. I might add that five years ago, you would have almost surely gotten the green light for such a project. These days, however, the loan approval process has gone from full throttle to closed throttle in many instances.

In some desirable parts of the country, where older, functionally challenged $300,000 homes are being razed and replaced with $1 million brick homes, your sort of plan has worked well for owners and lenders. Unless you’re similarly positioned or have substantial equity in the current home, and can pay for the teardown out of pocket plus produce 20% or so of the down payment, you may face stiff challenges to finding affordable financing. In most knock-down rebuilds, the larger the replacement home, the less of a default risk you are considered.

In any event, you will need to produce exhaustively researched numbers for the lenders on construction costs and the estimated value of the replacement home as well as its design. The design is important because the lender will want to know that the new home will be built in context with existing neighborhood homes. By the way, it’s unlikely that a lender would give you a home equity loan, as your question asks, on a house that you are demolishing unless the land is extremely valuable.

Also, some cities have strict permit policies on teardowns or are amending zoning laws. Before you spend any more time or money planning this, find out from the city whether a demolition is even permitted. Also, don’t forget to factor in the cost of alternative living arrangements while your replacement home is being built. Based on your home’s value and presumed living needs, that could set you back at least $10,000 in rent.

You might instead consider a comprehensive remodel that would involve a partial demolition, some new construction and significant upgrades. This would help assure the home’s continuity with the existing neighborhood. Plus you would be able to live there at least for part of the process. Alas, in many cases, it’s actually less expensive to demolish a home than remodel.

An eco-friendly lifestyle doesn’t need to be difficult or expensive. Here are 21 easy ways to make your home a little greener — and put some money back in your wallet.

 
It may seem like a great deal, but be aware of possible expensive repairs lurking inside.

By Marcie Geffner of Bankrate.com

A for-sale house that’s been vacant may look like a bargain, but buyers should be cautious, because expensive problems often lurk inside homes that have been unoccupied for some time.

A home can become vacant due to a marriage, job relocation, death or other life event. But vacancies today are more often due to a bank foreclosure or short sale in which the lender accepts less than the mortgage balance. It’s these bank-owned properties — sometimes called “real estate-owned,” or REOs — that tend to be “problem homes,” says David Tamny, owner of Professional Property Inspection in Columbus, Ohio, and 2010 president of the American Society of Home Inspectors in Des Plaines, Ill.

Vacant homes can suffer from a wide variety of ills due to neglect, deferred maintenance on the part of the previous cash-strapped homeowner, and vandalism, Tamny explains. Broken water pipes, stolen copper wiring, damaged appliances and mold are but a few examples of the potential problems that may await buyers of these homes.

The risks for buyers are front and center since the number and percentage of vacant for-sale homes has increased during the housing slump. More than 2.2 million for-sale houses in the U.S. were vacant in 2008, according to the U.S. Census Bureau. That figure was more than double the 1 million vacant for-sale homes in 2000. Vacant homes exist throughout the country, but the percentage of vacancies in 2008 was higher than the national average in the South, Midwest and West, and lower in the Northeast.

Turned-off utilities limit home inspection
Homebuyers typically hire a professional to conduct a visual inspection of the home and prepare a report on its condition. That’s a wise precaution, but not even a well-qualified and thorough home inspector can see inside walls. Nor can an inspector assess the condition of a home’s plumbing, electrical wiring, heating-and-cooling system or major appliances if the water, gas or electricity has been shut off.

“Buyers often don’t understand that if there is no electricity, they are going to get a very limited inspection,” Tamny says. “You could end up with a lot of surprises if you don’t have those systems turned on prior to the inspection.”

Swimming pools, which naturally are more common in such states as California, Arizona, Nevada and Florida — where foreclosure rates have been high — are also a special concern if a home has been vacant. Some inspectors won’t include a pool as part of a basic inspection. Others will include the pool, but again, it may be impossible for the inspector to check out the equipment if the utilities have been shut off.

“You probably will have to accept the pool (as-is because) it’s unlikely that you’ll be able to get the whole thing up and running just for the purpose of an inspection and then shut it back down,” Tamny says. “You could have thousands of dollars in repairs.”

As-is home purchase can be risky
Some banks have procedures in place that allow prospective buyers to turn on the utilities, but the buyer may be required to pay a deposit to the utility company and put his or her own name on the account, even though he or she doesn’t own the vacant home. That inconvenience may prompt some buyers to forgo parts of the home inspection that can’t be performed unless the utilities are on.

That can be risky, because unanticipated repairs can cost thousands or even tens of thousands of dollars, and the buyer typically will have no recourse with the bank. That means the buyer will be stuck with whatever problems the house has.

“Buyers are attracted to a house because it’s discounted from what it sold for a number of years ago and they are hoping to get a bargain. They don’t always understand that sometimes the problems make up the difference between the cost of the house and what they are getting for a discount,” Tamny says.

What’s your home worth?
Vacancy may affect homeowners insurance
Homebuyers also should know that insurance companies may decline to issue a homeowners insurance policy until the agent looks at the vacant home, says Dick Luedke, a spokesman at State Farm in Bloomington, Ill. The agent’s once-over isn’t the same as a professional home inspection, but it can mean extra expense if the home is in poor condition.

“If the home is uninsurable, we wouldn’t write the policy. If the problems just increase the risk of the potential of a future claim, then that might increase the premium,” Luedke says.

A homeowners insurance policy also may require a vacancy endorsement, again at an extra charge, if the home will continue to be vacant for more than 30 days after the sale. If the vacancy is due to major repairs, a dwelling-under-construction rider may be necessary as well.

While you’re washing windows and organizing closets, don’t forget to give your home a maintenance walk-through and take a few steps to keep it running smoothly and efficiently.

By Leah L. Culler of MSN Real Estate

As the weather warms and flowers start blooming, some homeowners are prepping their spring-cleaning checklists. And even if you don’t plan to scrub every nook and cranny in your home, there are some springtime tasks you shouldn’t skip.

“Houses don’t last when people don’t take care of the obvious, and a small problem becomes a big problem,” says David Lupberger, home-improvement expert for ServiceMagic and past president of the Master Builder Group, a design/build remodeling company. (ServiceMagic is an MSN Real Estate partner.)

There is always plenty of work to do, but you don’t want to dedicate every beautiful spring weekend to working around the house. We’ve put together a list of what home-maintenance experts deem the essentials for spring. It will only take a couple of hours to evaluate your home with this checklist and determine what you’ll need to do. If maintenance is needed, dedicate a few hours each weekend and you’ll be done in no time.

As Lupberger suggests, let’s “start high and work our way down.”

• Video: EPA rule to impact home improvements

Roof
Your first stop is the roof. If you want to tackle this task yourself, make sure you know what you’re doing and are comfortable using a ladder and walking on an often-steep incline. You’ll want to check the shingles for any curling, warping or cupping, and for any granule loss or cracking, says Joan Crowe of the National Roofing Contractors Association. Also check the flashing, those metal pieces that serve as a transition from the roof to a vertical surface like a chimney.

“Do a visual inspection and see if anything is loose,” Crowe says. “Make sure everything is secure. Circle around the house and take a looksee.”

But Crowe strongly recommends that homeowners don’t climb up there themselves.

“Hiring a professional is always the best way to go,” she says.

When hiring a contractor to inspect your roof or make repairs, make sure you check their credentials and references. Ask for proof of insurance and get information about the materials they’ll be using and any warranty that comes with them. You can find more information on finding a reliable contractor on the consumer section of the NRCA site.

• MSN Lifestyle: Spring-cleaning basics

Attic
You often can find a problem with your roof by hunting around in the attic for leaks and moisture. If there is a moisture problem, Lupberger says you’ll typically be able to smell it. Keep an eye out for any black mold or green algae, which can be killed using  a mild solution of bleach and water. Crowe recommends hiring someone to handle this task, since full eradication can be difficult.

Another attic task: Check your insulation. Make sure it’s not covering intake vents, Crowe says. And be sure you have enough. Lupberger says the recommendation for homes is R-38, which is 12 inches of blown-in insulation; if you have any less than that, your home isn’t running efficiently. Unless a homeowner is experienced in installing insulation, Lupberger would recommend hiring a pro to handle any augmentation.

“As you move into summer, it’ll keep your home cooler and you’ll use less electricity for your air conditioner,” Lupberger says.

Gutters
You may have dutifully cleaned your gutters in the fall, but a spring check is even more important. Many homeowners would be surprised to learn that more water damage happens to gutters in the spring.

Slide show:  Gutter cleaning and care

The freeze-and-thaw cycles of winter, and the snow loads, may shorten the life of your gutters and downspouts,” rendering them inadequate to handle heavy spring rains, , says Tony Cobb, president of the National Rain Gutter Contractors Association.

Bing: Search & decide  Find a certified contractor   Get Bing cashback on gutter guards  How to check for water leaks

As you’re clearing debris from the gutters, be sure to check a few other things:

• Make sure the back of the gutter is secured and that no water is leaking behind the gutter.
• Make sure your downspouts are secured to your home and that there is no blockage. You can check for blockage with a leaf blower (listen for the sound of resistance inside) or by tapping on the downspout and listening for a hollow sound.
• Make sure water is diverting at least 3 feet away from your home’s foundation. Check for any low spots next to the foundation. Keeping water away from your foundation is the most important job of gutters and downspouts.

Cobb reminds homeowners that cleaning the gutters is a dangerous job that kills and seriously injures hundreds of people every year. Hiring a seasoned professional who is comfortable climbing a ladder is the best way to ensure safety. The organization has a contractor locator on its site at nrgca.org.

Homeowners should change air filters as needed and keep vegetation and debris well away from the outdoor unit of the system. Any blockage to air flow forces the system to work harder to produce the same level of comfort.

“You’ll spend more now, and in a few years when the equipment fails,” Prather says.

Another simple way to save money is to keep your thermostat at the highest comfortable level in the summer and the lowest in winter. A one-degree change in temperature changes energy consumption by about 4%.

You can find tips and checklists, as well as help finding a reliable contractor, on the ACCA Web site.

“The only purpose of paint is to seal wood surfaces and protect the wood from the elements,” Lupberger says.

He says touch-ups can extend the life of your home’s paint job by two or three years, which translates into huge savings.

“Fix it now and you’re not repainting next year,” he says.  

If you have a deck, check for loose boards and see if you need to do any resealing. You should also get your deck cleaned thoroughly at least every other year with a pressure washer. Homeowners can do this themselves, but only if they are experienced in the proper use of a pressure washer, Lupberger says.

“With several hundred pounds of water pressure, you don’t want to spray yourself or any other living thing by accident,” he says.

And, because the force of the water takes everything off the deck, the power-washing should be followed up with application of a deck sealant. This washing and sealing process will extend the life of the deck. 

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Do some general cleanup in your yard, too. Trim any bushes and trees so they’re several feet away from your home. If you have a sprinkler system, you can get it checked by a professional, who will make sure there aren’t any leaks before you turn it on for the season.  Rake up any excess leaves, which can suffocate your lawn and keep it from growing.

Start small
Pick an easy task to start. Checking one thing off your list will give you a sense of accomplishment – and the momentum you need to keep going.

“Your house lets you know when something is wrong,” Lupberger says. “If you handle these things regularly, it doesn’t turn into a huge project; it’s just a variety of small ones.”

http://realestate.msn.com/article.aspx?cp-documentid=23785471&Gt1=35005

Remodeling professionals tell how to tell a fixer-upper with great possibilities from a hopeless money pit.

By Marilyn Lewis of MSN Real Estate

Steve Gray and his wife, Deanna, bought a dowdy fixer-upper in Indianapolis 10 years ago. The windows were shot, the lighting was old and it was a time machine, with décor unchanged from 40 years ago. Oh, and it was beige, beige, beige.

“The walls were the same color as the carpets, which were the same color as the ceiling,” Gray says.

But what the couple wanted most from the purchase was the old Lantern Hills neighborhood; it had been the exclusive location when they were kids.

Also, they saw something that others apparently had missed: The house had amazing potential. True, there were no granite countertops, spa bath or stylish cabinets. But there was something much better: The three-bedroom, three-bath house was a classic example of mid-20^th century “Prairie” style (think Frank Lloyd Wright). It had a walk-out basement, enclosed courtyard and a 2-acre, wooded, hilltop lot.

The Grays made cosmetic changes — new countertops, paint, floor coverings and light fixtures — shortly after moving in. With these easy and relatively cheap fixes, it became a terrific home and a solid investment. Then, they embarked on a long-term plan for remodeling and expanding in stages.

“I’ll bet we saved 20% because there were not a lot of people who could envision what the house could really be,” says Gray, who is a professional remodeler.

Assemble a team
Before making a move, get input from qualified professionals. Most remodelers will visit a home you’re considering for free, pointing out obvious problems and offering a “guess-timate” of the cost of achieving the changes that you envision, Gray says. It’s too soon to involve a designer or architect at this stage. (For that, read “How to hire a good home contractor.”) Find remodelers using the National Association of Home Builders’ directory of professional remodelers and check the NAHB advice on hiring a pro.

A trusted real-estate agent who knows what sells well in your market can also help. “Work with them on running the comps, looking at the neighborhood and understanding what you could do with a particular home to increase its economic value and value as a place to live,” Fritschen says. (Read “Find a superstar real-estate agent” and use the National Association of Realtor’s agent locator or the National Association of Exclusive Buyer Agents‘ directory.)

• MSN Lifestyle: Stylish tricks for every room

Don’t get your heart set on a home until a home inspector has given it a thorough examination. If you make an offer on a house, make the sale contingent on the inspection, which means that you have the right to back out or negotiate further if the inspection turns up problems. The seller usually pays for the inspection, which runs around $300, depending on the locale. If possible, go along on the inspection, to see the house through the inspector’s eyes.

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Signs of potential
To find the homes with great potential, you must screen for qualities that make a worthy investment and for problems that could suck a hole in your savings.

For a worthy investment, look for:

• A great location. Location was the first thing each expert mentioned. Get into a great neighborhood at a discount by buying a small home that you can expand later. “Look for a neighborhood where (other) houses have been upgraded,” advises Fritschen, who publishes advice, articles and calculators for remodeling. If you plan to add on, expand the home’s size only to the neighborhood’s average or slightly above. Rule of thumb: You get a better return on your investment from a smaller house in a great neighborhood than from a fancy house in a so-so neighborhood. Finding the right neighborhood may take detective work: Knock on doors and ask neighbors about turnover — low turnover is good — and whether they think the neighborhood is getting better or worse. Don’t just visit in daylight. To get the full picture, Gray advises returning repeatedly, in the evenings, at night and on weekends when residents are home. (Learn more: “How to find a safe neighborhood.”)
• Relative youth. Resist the charms of historical homes unless you’ve got expertise or deep pockets. Find a home no older than 50 years, Fritschen says. “If it’s 100 years old, there are so many fundamental problems with piping, electrical, heating and foundation — it just goes on and on.” Simple ranch homes and newer tract homes are your safest bets, Wysocki says. With the housing crash dumping lots of orphaned new homes on the market, it’s a great moment to score a place with potential, as long as it only needs minor TLC. (Even with newer homes, do your research: Read “How long can a half-built house sit?” and “Buying a foreclosure? Plot your strategy.”)
• Simple upgrades. Your mission is to find a home that’s ignored and underpriced because of its shaggy looks, yet really requires only a “makeover” — simple, inexpensive cosmetic improvements like new paint, flooring and light fixtures. That means avoiding the impulse to buy a home that needs upgrades that require moving or replacing walls, cabinets, countertops, appliances, plumbing or electrical systems. “HGTV says that you can do a room makeover for $750, but that doesn’t really happen in the real world,” Gray says. The best fixers have kitchens and master baths that are spiffed up easily and cheaply. Otherwise, you’ll find yourself easily spending $5,000 on granite countertops alone. In Indianapolis, Gray says, the average bathroom facelift (new flooring, mirrors, paint, countertops and vanity, hardware, light fixtures, sink and faucet) runs $5,000 to $7,000. A full-scale remodel — moving walls, plumbing, vanity and wiring, and replacing tub, sink, toilet, flooring, paint and counters and building a new tile or stone shower — costs $40,000 to $55,000, depending on the  job and choice of materials. (Play around with Fritschen’s Remodel Estimates tool or Contractors.com’s Home Improvement Project Estimator to roughly calculate costs. Read “Remodeling in 2010? Additions are out, replacements are in.”)
• A floor plan you can live with: Find a home with a basic layout that makes you happy just as is. To contemporary buyers, that usually means an open floor plan, not a warren of small rooms. At the same time, watch out for too much openness, for bedrooms and bathrooms that lack privacy. Also, keep in mind that, in suburban areas, buyers expect a home to have a garage, so investing in a home without one could mean sacrificing resale value. 
• Light. Picture how you respond to a light-filled home and you’ll recognize what value natural light adds. Dark houses aren’t always as easy to fix as you might think. If you find yourself thinking, “I could just plug a window in over there,” stop. It’s not expensive to add a new window, Wysocki says. But if a room seems to call out for a window where there is none, there may be a reason: zoning issues, structural problems or an ugly house next door.
• Plenty of closets and storage. While it’s true that you can always add on, it’ll cost you, so look for plenty of convenient storage included. Fritschen estimates that adding a simple storage area (with a concrete floor, walls and a roof) runs $40 per square foot, on average. Prices vary depending on local costs, and contractors often charge a minimum to cover overhead, which means that a per-square-foot cost of a 400-square-foot garage may be less than that of a 50-square-foot shed.
• Updated maintenance. Ask if the sellers kept service records on the furnace and mechanical equipment and look them over. Were appliances and home systems serviced annually? Try all doors, drawers, knobs, windows, faucets and appliances to ensure that everything works and that you’ll understand any expenses you’ll be taking on.

When to be wary
Impulse buys are fine for shoes and clothes, but a home is too expensive and trouble-prone to let your brain abandon you when you need it most. “The biggest problem for first-time homebuyers is that they’re emotionally charged,” Gray says. “They get invested and don’t really investigate it far enough.”

Here are signs to back away, no matter how deeply you are infatuated:

• Single bathrooms.  A solo bathroom can limit a home’s resale value. And experts disagree on the wisdom of adding an additional bathroom later. “There’s no way you should buy something with just one bathroom in a suburban area,” Wysocki says, although he adds that it might be OK in urban neighborhoods popular with singles. Fritschen, however, views adding a bathroom to a one-bath home as “free money” because it can substantially boost the property’s value. It all depends on potential resale value, on your skills, your money and on whether you’re getting such a good deal that your finances allow for the extra expense.
• Galvanized steel plumbing or aluminum wiring. Galvanized steel pipes, used before copper plumbing came along, are vulnerable to sediment buildup, leaks and corrosion. Newer plumbing uses polyethylene (PEX) or polyvinyl chloride (PVC) pipes. Aluminum wiring, a potential fire hazard, is no longer used in home construction; copper wiring’s the standard today. Either of these elderly materials signals the need, eventually, for expensive upgrades. “Each of those is a $10,000 bill,” Fritschen says.
• Roof replacement. A home inspector (Read “4 tips for finding the best home inspector.”) can tell you if a house needs a new roof. A new roof today can last up to 50 years, depending on the material, but you don’t want to be the one to pay $20,000 to $40,000 for a new one. The investment won’t increase the home’s resale value or your pleasure. Unless a super deal makes the roof cost pencil out, find a house that has a roof with lots of life left.
• Siding or window replacement. New siding ($10,000 to $13,000 and up) and windows ($10,000 to $18,000 and up) are not only big expenses, need for them is a danger sign: They can indicate water damage hidden inside the walls, Wysocki says.
• Water stains. A good home inspector will point out signs of water damage. But you can keep your eye out, too. Inspect ceilings, walls and floors for stained, warped or uneven, peeling, discolored or damaged drywall or flooring. Why are these blemishes a big deal? Because they may point to mold or rot beneath the surface.
• Rot.Check all surfaces, including in the basement, for rotting wood. Gently poke trim and wood surrounding windows and gutters with a pencil tip to spot soft, spongy or crumbly wood. Not only is replacing trim an expensive headache, but visible rot may just be the tip of the iceberg.
• Foundation problems. Drainage and foundation repairs are thankless expenses that can run tens of thousands of dollars. To detect foundation trouble, tour the exterior, checking for cracks. If you can slide a quarter sideways into a crack, it’s too big, Gray says. Try to visit after a rain to look for water accumulating around the foundation. (Read “Six signs your home could be a lemon” for more guidance.)