Before you start house hunting, decide on what you really need. Then list the features that would be nice to have. Once you have a clear idea of what you need as well as what you would like in a house, finding that house will be much easier.

When you can tell the difference between your housing wants and needs, you'll probably have an easier time deciding what you want and need from a neighborhood. Where you live is as important as the house you live in.

One common way people find homes in their price range is by using a real estate agent. The agent can look for homes that meet your needs and financial circumstances, and can help you narrow your choices. Unless you decided to hire a buyer's agent (see adjoining column), the seller pays the agent's fee, so there's no cost for you.

Before you make a decision, you should compare your wants and needs. Also look at the short-term and long-term costs associated with each house you're considering. Are the appliances in good condition? What about the back yard? What are commuting costs?