Many times when a  potential buyer finds a home they absolutely love they overlook many issues with the home that can be very costly.  Unfortunately, some homesellers will not always disclose the whole truth to potential homebuyers. Of course you cannot have every home you look at inspected by a professional to locate problems but you can look for certain issues yourself to spot potential problems.

Wiring Warning Signs
While only a professional can diagnose problems with wiring, you can look for potential problems. Make sure all the switches and outlets in the house function properly. If you notice flickering lights, or lights that don't work or warm or hot outlets or faceplates these are all symptoms of serious wiring problems.

Insects and Rodents
Keep a close eye out for signs of rodents and bugs. Be on the lookout for hidden mouse traps, rodent droppings, roach motels or other signs that there may be a problem. If you do locate a home that you are ready to purchase, absolutely get a termite inspection as they can only be detected by a professional inspection. Termites can be a finanical nightmare if not treated.

Tour The Neighborhood
It is always a good idea to tour the neighborhood and get a feel for any potential issues. Are their several other homes for sale? Is the neighborhood growing or are businesses closed and boarded up? Pay close attention to how other homeowners maintain their property, if it looks neglected that is a big red flag. This can cause problems for resale values down the road.

Slow Flushing Toilets and Sluggish Drains
It is a good idea to inspect how toilets flush and how the drains works because toilets dump a lot of water down waste lines quickly, they are usually the first to exhibit signs that there is a clog or trouble with a septic system. Be sure to test all the drains, if they all are slow that could be a serious sign that the whole system has issues, which can result in a major and an expensive repair.

If you do find a home that you have looked thru and found no red flags and you are ready to take the next step it is vital that you hire a professional home inspector to ensure that everything is good to go. It will be the best money you will spend, it will save you thousands of dollars and headaches down the road

As part of the government's efforts to encourage people to spend money to help revive the economy, the House voted 403-12 Thursday, November 5th to expand a popular tax credit for homebuyers. Buy a home before May 1 and collect up to $6,500 from the government. If you're a first-time homebuyer, get up to $8,000. 

In January first time homebuyers were eligable for a tax credit of up to $8,000  as part of the economic stimulus package. That tax break is scheduled to expire at the end of November, the House voted to extend it into the spring — and to expand it to many people who already own homes.

The new tax credit would be for homebuyers who have owned their current homes at least five years. They would be subject to income limits, for tax credits of up to $6,500.  For those first-time homebuyers, they are eligible for credits up to $8,000. To qualify, buyers have to sign purchase agreements before May 1 and close before July 1.

These tax credits are available for the purchase of principal homes costing $800,000 or less.

With the slumping economy and real estate industry; Realtors, home builders and mortgage bankers, have lobbied hard for the expanded tax credit. However, lawmakers said the program will not be extended again.

Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment. Taxpayers who want immediate refunds can amend their tax returns for 2008 to claim the credit.