Home Buying for Dummies Book Review

Home Buying for Dummies opens by building an argument around investing time in the pursuit of buying your first home. While well written and brimming with useful tips and strategies to arm homebuyers with critical purchasing skills, getting through the book, Home Buying for Dummies (Wiley Publishing, $19.95) will take a fair bit of time investment itself.

I must admit, this is my first foray into the world of Dummies books. It is the wildly popular series of learn-it-yourself manuals aimed at readers who desire a simpler―maybe even rudimentary―explanation of otherwise complex topics.

I expected more pictures.

In lieu of massive diagrams and stick figure images I'd conjured up about these titles before actually reading one of them, I found a surprisingly deep and detailed narrative  encompassing everything from getting readers to answer the question of whether or not to buy a home, right through to a concise series of tips on what to do after they buy.

Co-written by Eric Tyson, one of the best-selling personal finance authors in the country, and Ray Brown, a real estate professional for more than thirty years, the book first coaches readers into the exercise of taking a look and analyzing the data behind their spending habits. Using this information creates a realistic price for a home that would be affordable to you. The authors contend that lenders can't tell you what you can afford, so buyers need to take the responsibility of staying within that number. Included in this section are tips for buying with less of a down payment. Most types of mortgage types are reviewed, and the use of each is also shared. ARMs are discussed as an option and are explained well. In light of the bad press this type of mortgage has been getting, it is timely information. The reader is also introduced to the various forms and paperwork that will be involved, the sight of which can be overwhelming to people who aren’t accustomed to it.

A large section of the book is dedicated to where buyers should buy. It’s all about location, and care is given to the strategy of buying the least expensive home on street, choosing between an attached or detached residence, and other topics. This section also touches on buying properties in foreclosure.

The Building a Real Estate Team section focuses on the importance of having a group of homeownership professionals working in your best interest. It includes tips on selecting a home inspector. The lion’s share of this section is dedicated to finding the best real estate agents. Disappointingly, not much of this chapter focuses on picking the right lender, other than some sweeping thoughts around choosing a mortgage broker versus a lending institution. When dealing with money, especially on this scale, it still seems as if the true role and responsibilities of the person or group that finances such a large investment are by and large a mystery. More financial insight here would have made this section more well rounded.

The author tends to look at the buying process as a game, with a segment dedicated to the negotiating process aptly named “Let the Games Begin.” In this section readers learn about the negotiating process, including negotiating styles, how to use finesse during negotiations, and what constitutes good negotiating. It adds some warnings, like how to spot a fake seller, that may help buyers avoid wasting time and possibly save them money.

When it comes to protecting your home, the authors’ take a two-direction approach, suggesting that every home should be inspected. On the other side of the coin, they give insight on homeowners and title insurance as methods of home protection.

There are many sticky little things when it comes to the real estate closing procedure that the authors do a great job of explaining. The intricacies of escrow, taking title, and getting possession of the property are all represented in one chapter. Buyers are also urged to look for specific bits and pieces when performing a final verification of the home they are buying.

When it comes to the Internet and real estate, the authors have a healthy skepticism about the World Wide Web. The section dealing with the Internet covers thoughts on why to avoid traditional search engines in your home search and why many online mortgage calculators should be shunned. The authors sum things up by helping readers realize that the Internet is used as a selling tool, so it warns readers not to be duped by sites with information that may vary from current market conditions. They do, however, give some good tips on surveying properties online, and there are many examples of Web site recommendations for keeping up to date on real estate news and researching financing options.

To wrap it all up, the authors include a total of three top-ten To Do lists. The first covers post-purchase actions, like rebuilding your savings and reasons to ignore mortgage insurance solicitations. The second covers investing in real estate, with items ranging from Avoiding Time Share Condos and Vacation Homes, to considering fixer-uppers. Lastly, Selling your Home briefly bullets strategies such as understanding your home’s hot buttons and knowing what your home is really worth.

Home Buying for Dummies includes examples of a typical real estate contract and illustrates a good inspection report. Readers will also find the glossary helpful for tough-to-understand terms.

The book offers a big menu of information for new homebuyers to digest, ut it's all needed. The major tips and things to remember are clearly marked, making it easy to note important items. Pick this book up.