Finding a home can be intimidating, particularly for first-time homebuyers. As such, you'll want to conduct an extensive search, do plenty of research along the way and ensure any residence you check out meets all of your needs. Ultimately, you'll want to make an informed home purchase. And in order to do so, here are three factors that you'll want to consider: 1. The Current Real Estate Market Do you know the difference between a buyer's market and a seller's one? If not, you may be in trouble, especially if you hope to find a bargain on the real estate market. Real estate prices may fluctuate depending on a variety of factors, including the national economy and supply and demand for houses in a particular area. Thus, you'll want to be thorough and learn as much as possible about the real estate market in your area. Examining the prices of houses in a particular area is valuable, as this will enable you to see what previous homebuyers paid for residences over the past few months. Also, you should meet with a real estate agent who will be able to provide you with extensive housing market data that can help you make the best decision. 2. Your Budget Let's face it – a starter home may be one of several residences you own in your lifetime. As a result, it should serve as a viable residence that you can enjoy for at least a few years, then allow you to move on to a bigger and better house. When it comes to searching the real estate market for a starter home, you'll want to take a close look at your budget. By doing so, you'll be able to determine the maximum amount that you can afford for a starter residence and explore homes within a set price range. To establish a budget, you should consult with a lender and try to get pre-approved for a mortgage. That way, you'll know what you can afford, be able to improve your chances of purchasing a starter home that fits your budget and accelerate the process of finding a new place to live. 3. Your Must-Haves Although a starter home is commonly viewed as a short-term residence, there's no reason to settle for a subpar residence. Instead, you can make a list of must-haves and wants for your new home and explore the real estate market for a residence that fulfills your needs. Your must-haves are essentials, i.e. things like central air if you want to move to a warm-weather climate. On the other hand, wants may include things like a swimming pool and other non-essential features. Differentiate your must-haves from your wants by deciding exactly what you need from a starter home. Crafting a list of must-haves and wants will help you determine what is important to you and make it easier to search for residences that meet your homebuying criteria. Use the aforementioned tips to avoid the stress commonly associated with buying your first house, and you should have no trouble finding a great starter residence quickly and effortlessly.