They say hindsight is 20/20 – I couldn’t agree more when reflecting on my first home purchase and sale. Luckily, I had a good Realtor to watch out for me…because I certainly learned a few lessons.

First: An investor was selling the house as a flip, and, though the renovations were well-done, the layout wasn’t perfect for us. I told our Realtor “I would like the house, if only the house had x, y and z.” Our Realtor went back to the Sellers and they agreed to make ALL of the changes. Had she not encouraged me to ask for what I wanted, I probably would have passed on this fantastic home.

Lesson: It doesn’t hurt to ask for the things that you want.

Second: On moving-in day, we looked around the kitchen for a place to put our silverware, only to realize that we only had one drawer in the kitchen. ONE. As we looked for a place to plug in the bedroom phone, we realized that the home only had one phone jack. ONE! My sectional couch was so large for our new small house, that we couldn’t even get it in the den. How could I have missed these important facts? Though we made it work, I know now to look beyond the surface and look at the details that really matter – storage, furniture fit, cable/tv/phone wiring, overhead lighting, etc.

Lesson: Be sure to look beyond the obvious – especially when assessing storage capacity and furniture fit.

Third: Even though the house was completely remodeled when we moved in, I still wanted to make changes. I needed more furniture, had to buy window coverings and had to paint to match my décor. Luckily, we hadn’t maxed out our loan capability or used all of our savings to buy the home. (We actually had the Seller pay closing costs, which helped.) However, I was still surprised by how much money we needed to make the house my home.

Lesson: Have additional cash on hand (beyond the down payment) to make changes and furnish the house once you move in.

Fourth: We luckily had a fantastic commute but we weren’t surrounded by the neighborhood amenities that I wanted. I missed my old restaurants, shops and old neighborhood conveniences. At my first home, I learned to live with new “favorites” but I also learned my lesson. Before I purchased my next two homes, I drove the commute, discovered my walking trails and ate at the restaurants that were within minutes of the new home before I narrowed my search to a specific area.

Lesson: Drive the commute and learn the neighborhood before you decide to buy. The house might be fantastic but you may miss what’s really important.

FIFTH: I drove by my first home yesterday, only to find that the new owner had torn it down and is building a gargantuan new home on the lot. Wow! If I could only be the owner now! Even in this recession, I could have made some money! I reflected that I bought that home in 2000 on a great 0.3 acre lot, within 3 miles of downtown. We paid $200,000, which equated to about a $1200 monthly mortgage and tax payment. I sold it without even considering holding the property and keeping it as an investment. Had I kept it, even with the recession, that home would easily rent for more than $1200 and would be worth about $325k. I would be 10 years into a 30 year loan and would only be 20 years from owning it free and clear.

Steve Harney, a nationally known housing market analyst, once told me, “Amanda, I’ve never bought a house wrong. I’ve only sold it at the wrong time.” I now know what he means.

Final Lesson: Think before you sell. If you can keep it, real estate is a fantastic long term investment. 

Hopefully, these lessons will help you make the right decisions. They have definitely helped me.