Internet Research Can Point Buyers to the Right Questions

Motley Fool columnist Dayana Yochim believes Internet sites can help throughout the buying process. (Motley Fool)

When it looked as if the rent on her Alexandria apartment was going to soar last year, Dayana Yochim hit the streets to find a replacement. One day, while she was returning home from checking out yet another rental, she stopped in at an open house -- and her plans suddenly changed.

"I walked up the stairs, saw the place and just about said 'I'll take it,' " Yochim recalled. "The next day, I was practically making an offer."

As the money columnist for financial advice Web site the Motley Fool, Yochim figured home buying would be simple for her. Instead, she said, she discovered how much she did not know.

"Step one was to buy a house," she said. "Step two was to learn everything I could about buying a house. I did know a lot about the process, but doing it firsthand taught me much more."

Yochim believes today's home buyers are generally making smarter decisions than in recent years, when many skipped negotiations and traditional contractual protections to grab coveted properties.

"People are finally asking the right questions," she said. "They're focusing on parts of the process they probably overlooked in the boom days."

Preparing to ask good questions, however, takes time and effort. In an interview, Yochim provided a guide to Internet sources that offer help for each step of the buying process.

· Your first step should be to amass cash for a down payment, Yochim said. She recommends high-yield savings accounts, which generally pay more interest than traditional savings and interest checking accounts. They also limit transaction volume, helping strike a balance between the fixed term of certificates of deposit and the easy accessibility of typical accounts.

"This is hands-off money," Yochim said. "Get it out of any place you're likely to access late at night when you have the munchies." She points to HSBCdirect.com, as well as aggregator site Bankrate.com, for people shopping for good interest rates.

· Next it's time to scout properties. When you know what you're looking for, Yochim said, visit sites that illustrate how much other people are asking, and have paid, for comparable properties. "You want to know what homes go for in the neighborhoods you're looking at," she said. Yochim recommends Zillow.com, which offers estimates of home values even if they're not currently for sale, and FSBO.com, a collection of listings sold directly by their owners.