In a Time of Change, Keys to a Successful Purchase Remain the Same

Much has changed in the world of real estate over the past 18 months.

There are new tax credits, tax deductions and tax laws relating to short sales and foreclosures. There are new rules relating to appraisals, mortgages and home-equity loans. And there are new entities to oversee and manage the crisis.

Despite these changes, some key parts of the home-buying process haven't changed at all. Here is my list of five things that have remained constant through the tumult:

-- Real estate agents are still a good deal for home buyers.

While the Internet provides a load of great information about homes, school districts, neighborhoods, shopping, local public amenities and services, for many home buyers it hasn't replaced the knowledge and experience of a great real estate agent.

It's extremely valuable to have someone in the process who really understands what you have to do to close on a house purchase, who can walk you through the seller's legal disclosures and who has watched houses in a particular neighborhood go on and off the market for years and can provide you with context.

I don't think a home buyer should ever abdicate his or her responsibility to investigate a piece of property. But having a great real estate agent talk about why the sellers are divorcing, or a problem the prior owner had with a septic system, or issues surrounding the new development going up next door can help you make a smarter offer or be a better negotiator.

All of this experience is even more important if you're buying new construction. An agent who regularly works with a developer or has watched the developer put up several houses or subdivisions can tell you whether buyers are happy with the properties they have purchased or what kind of upgrades, freebies or discounts the builder has given away.

Best of all, the fee to your buyer's agent comes out of the commission paid to the listing agent. In many cases, if the buyer has no real estate agent to represent him, the listing agent still receives the full commission. Finding a smart, highly qualified real estate agent to assist you in your purchase is a savvy move that will never go out of style.

-- You'll get the best loan if you shop around.

Whether you're buying a toaster or a car, you'll always get a better deal if you shop around. Using the Internet to hunt down the least expensive price on a particular toaster or car model might take just a few minutes, and your efforts will leave you with more cash in your pocket.

What I don't understand is why many home buyers don't do their homework and shop around for their financing. Financing a house is likely to be the most expensive thing you do. If you take out a $200,000 loan, with a 30-year, fixed-rate mortgage at 5.5 percent, you'll pay $1,135.58 per month, plus taxes and insurance. The interest alone will run you nearly $209,000 over the life of the loan.