You don't think about future maintenance costs when buying a home, but you should. Whether buying an older home or a newly constructed home, equipment can be faulty and costly to repair.

Usually a home's purchase price can be used to project maintenance costs. The recommendations for annual maintenance costs range from 1.5 to 4 percent of the home's original cost. While this is not always true, especially when the purchase price of a home is three-quarters of a million dollars, it is a good rule of thumb for the average home buyer.

Since most home buyers are focusing on making the down payment and not saving for future repairs, a home warranty provides a good back-up plan.

Most home warranties cost between $300-$400 and will cover many major home systems and built-in appliances for one full year after close. A home warranty will either pay to repair or replace a covered item and the homeowner pays a minimal deductible rather than the full cost of repairs. It's an easy way to manage your home's finances and plan for those unexpected repairs.

The purchase of a home is one of the biggest investments people will make in their lifetimes. But it is also among the greatest sources of anxiety. A home inspection helps ensure homebuyers of the quality of their investment by making them aware of its condition and alerting them to any concerns. This can serve to relieve stress, increase confidence and even reduce the threat of legal action in the future.

Some of the benefits of a home inspection are:

• Knowledge: Understanding exactly what you're buying - old or new
• Peace of mind: Helps in making a sound buying decision
• Savings: The home inspection reveals the need for repairs or replacements before you buy
• Fewer surprises: The home inspection limits the number of problems you may discover after you move in
• Education: A good home inspection also gives you invaluable details about your new home in addition to information about the condition of the property. You'll learn where the main shutoff valves to the utilities are located, how the house operates and more!

How do I find a good home inspector?

Not all inspection companies are alike, and selecting the wrong company could cost you thousands of dollars in repair and replacement costs. Consider the following when shopping for home inspection companies.

• Experience: How much experience do the inspectors have and how long have they have been in the business? The best home inspectors have been in business for years and have seen thousands of homes.
• Home Inspection Training: Have the inspectors gone through any extensive home inspection training? In many states inspectors can simply call themselves home inspectors without any training or licensing.
• Association Membership: Is the inspector a member of a professional home inspection organization? Companies that are affiliated with professional organizations are serious about what they do, and know about all the new developments in their fields. Some well-known trade associations are: American Society of Home Inspectors (ASHI) and National Association of Home Inspectors (NAHI). Inspectors in your area can be located through these associations.
• Liability Insurance: Does the inspector carry Professional Liability Insurance (Errors and Omissions Insurance)? If you ever need to collect on a legal judgment, an inspector without insurance my not be able to pay your claim.

What if I'm buying a newly constructed home?

An inspection on a new home is important for the buyer to level the playing field. As in any industry there are shortcuts and tricks of the trade in the construction business, and someone who is unfamiliar with them can easily miss them. A home inspector is better able to see nuances that may not be readily visible to an untrained eye. You also need an inspector to offset the builder's or contractor's interest. Much of the information about homes is either taken for granted by people, or remains unfound.

For newly constructed homes, an inspection of the house before the drywall is installed, otherwise known as a "preclosure inspection", provides a level of quality assurance for the buyer that many builders don't usually provide for their contractors. This inspection gives you a better chance of identifying and correcting potential problems when they are much easier and less expensive to fix, before they become physically or financially prohibitive. For example, this inspection may prevent the need for moving a wall so that kitchen cabinets don't protrude into a doorway opening, or moving electrical receptacles so they are placed where you need them.

Buying a home is one of the largest financial commitments a person can make in his or her lifetime. It's especially critical for first-time buyers to make informed decisions about the investment that they are about to make.

Coldwell Banker® offer these tips to first-time homebuyers to help make the process easier.

Define your wants versus your needs. Making a list of wants and needs before beginning the search for a home can make the entire process less overwhelming.

Check your credit rating. "Being approved for a mortgage is critical and a very easy process," said Lynn Bodenheimer, assistant manager, Coldwell Banker Residential Brokerage in Chesterfield, MO. "With Coldwell Banker Mortgage, it is done with just a phone call from either an agent's office or anywhere there is a telephone. Having a pre-approval in hand affords a buyer strength in negotiating, particularly important in a highly competitive marketplace, which many first-time home buyers encounter."

Investigate the neighborhood. Where are the schools and places of worship? How far is the nearest hospital or grocery store? Is commercial garbage collection available or do homeowners dispose of their own trash? These are basic, yet important, questions that some first timers may not think of until after closing on a property.

Be an informed buyer. Some neighborhoods have deed restrictions such as exterior maintenance, lawn care or fencing. "All too often, buyers aren't aware of restrictions that apply to their use of the property until it's too late," said Cheryl Kumma, sales associate, Coldwell Banker Bain Associates in Bellevue, WA. "Buyers should check with their real estate agent so they understand what restrictions are enforced in the area they are interested in."

Insist on a home inspection. Attend property inspections, be aware of environmental concerns and ask questions. "A small investment of time and money could save buyers a lot of headaches down the road," said Kumma. Look for a property with a home warranty. A Home Warranty offers a comprehensive insured home warranty that decreases the likelihood of a sale failing due to unexpected surprises.

Get help with the details. Coordinating these and the many details of a move can be overwhelming for even the most experienced homebuyer. Look for a real estate company that can help coordinate related services. The Coldwell Banker Concierge program is an exclusive service that aids in coordinating all the necessary details involved in buying and selling a home.

Don't rush. "Whether they're just excited about moving into their new home or concerned about the possibility of hikes in interest rates, many first-time buyers hurry important decisions and overlook property flaws," said Bodenheimer. "Purchasing a home is an important investment and buyers need to thoroughly think through the process to avoid making choices they will regret in the future."

Here are ten important questions you should ask your Sales Associate and why you should ask them.

Property Specific

1. HOW LONG HAS THE PROPERTY BEEN ON THE MARKET?
Why: The length of time a property has been on the market may indicate the seller's willingness to negotiate.

2. HAVE THERE BEEN ANY PRICE REDUCTIONS DURING THE LISTING PERIOD?
Why: The amount of any price reduction, as it relates to the overall purchase price, may indicate the seller's desire to attract an offer.

3. HAVE THERE BEEN ANY OTHER OFFERS ON THE PROPERTY?
Why: It will be helpful to know what offers have been turned down and for what reasons.

4. WHAT IS THE MOTIVATION OF THE SELLER?
Why: Motivation is a key element in any negotiation. As an example, if the seller has already purchased a new property, your ability to close quickly may be an attractive element of the negotiation.

5. WHAT PERSONAL ITEMS ARE INCLUDED IN THE SALE?
Why: Anything the seller is willing to leave behind that you won't need to buy when you move in has real value. Consider those items in your offer.

Neighborhood Specific

1. WHAT IS THE PRICE RANGE OF SOLD PROPERTIES IN THE AREA?
Why: This information is important since it will indicate the top and bottom of that specific market.

2. WHAT IS THE AVERAGE TIME ON MARKET FOR PROPERTIES IN THIS AREA?
Why: Short market times may indicate a seller's market. If this is the case you may face competition from other buyers.

3. WHAT IS THE LIST TO SALE PRICE RATIO IN THIS AREA?
Why: This information will indicate seller's past willingness to negotiate and by how much.

4. WHAT IS THE AVERAGE SALES PRICE PER SQUARE FOOT OF RECENT SOLDS?
Why: This approach to establish value works best in P.U.D. and/or where there are similar homes, lot sizes and improvements.

5. WHAT OTHER KNOWN FACTORS ABOUT THE PROPERTY OR NEIGHBORHOOD COULD AFFECT VALUE?
Why: Review the Seller's Disclosure Statement very carefully with your Sales Associate.

Final Recommendation

If you will be financing the property, get preapproved for a mortgage prior to making your offer. This will show the seller your commitment and ability to perform. Preapproval can be extremely important in the sellers' market.

How to Win a Bidding War without Paying the Highest Price

When the demand for houses in a sizzling marketplace outweighs the supply of houses available, many consumers think the highest offer is a sure-fire way to claim ownership of their dream home. In today's fast-paced market, Coldwell Banker¡Ëc professionals know that bidding for a house doesn't always require upping the stakes.

Accommodate the seller. As a buyer, you have to be flexible and willing to sacrifice a bit. Whether it's being willing to close one month earlier or later, do your best to meet the seller's desired closing time. Additionally, be willing to overlook the more minor and but less-than-perfect characteristics of a given home because other prospective buyers may not be able or willing to do so. "If the seller is under pressure and wants the house sold quickly, they'll prefer to work with the buyer that can accommodate them the most," said Richard Parlante, sales associate, Coldwell Banker McFadden & Sprowls, Naples, FL.

Prepare. If you are willing to make the investment, then you must be a qualified, solid, desirable buyer. Get a copy of your credit report and settle any debts that may be outstanding. "You'd be surprised how many people get turned down for a loan because of an old debt they had forgotten all about." Get pre-approved for loans and mortgages. "The seller wants and needs an ideal buyer, someone who is stable and ready to make a commitment to the property," said Donald Marcy, sales associate, Coldwell Banker Residential Brokerage, Madison, NJ. "Going into the negotiation process as a pre-approved buyer puts you at a major advantage."

Connect with the seller. Create a rapport with the seller and let them know why you prefer their house to others. "Homeowners are emotionally connected to their home," said Marcy. "Even when selling their home, they often feel tied to the integrity of the house. Because the seller loves the house, they are usually inclined to sell it to someone who will love it too."

Clean up your act. Eliminating as many contingencies as possible will give you an advantage when involved in a bidding war. If you have a home to sell before purchasing, sell it first. Reducing uncertainty makes the buyer more appealing to the seller and will create leverage for the buyer.

Show them the money. Be willing to increase the size of your down payment or make an all cash offer. "Sometimes the best way to win a bidding war and avoid paying a higher price is to increase your down payment," said Parlante. "Sellers favor strong buyers. If you can afford to make an all cash offer, do so. That's almost always a definite way to slam-dunk a sale."

Work with the best in the biz. Be sure to choose a sales associate who has an excellent reputation with other agents. Working with a Coldwell Banker® Sales Associate who is known in the industry for their professionalism, credibility and honesty will always work in the buyer's favor.