Some buyers feel apprehensive about approaching a "by-owner" seller. Perhaps in the past they've always dealt with a real estate agent, never directly with a principle. These buyers don't know what to say. And, if and when they want to make an offer, they don't know how to proceed.

If you feel this way, the best advice is to just relax. By-owner sellers are people just like the rest of us. Most are aware of buyer's anxiety, indeed, they may have their own seller's anxiety! Often they already have taken steps to smooth out the evaluation and selling process of their home by contacting professionals who are ready to come in and help with such things as preparing the sales agreement, inspections, and disclosures.

Nevertheless, you as a buyer can go a long way toward making your examination of the property and, if you like it subsequent purchase, easier by following these five steps:

STEPS TO APPROACHING A FSBO SELLER

• Get Your Financial Ducks In A Row - Just as with buying any property, you want to let the seller know that you're qualified. Remember, chances are you and your financial situation are completely unknown to the sellers. And yet you're asking them to join in a transfer of what is probably their most valuable asset, their home. Put them at ease by getting pre-approved - any good mortgage broker can handle this for you, or you can do it online here. A lender's solid pre-approval letter lets them know you can qualify for the mortgage you need to buy their property. And at the same time, it keeps you from having to disclose to them your personal financials.

• Determine If You're Really Interested - Go to the seller's website where the home is listed. Look at the photos. Check out the details and descriptions. Go to links that give you statistics on local schools and crime. Find out how far you'll have to travel to work. Finally, drive by the house and neighborhood and see if it's a place where you'd like to live.

• Educate Yourself As To Market Values - How will you know if the seller is offering you a bargain? Or asking too much? You can find out by checking out what comparable homes have recently sold for.

• Only After Doing All This, Contact The Seller - You can call or email, and set up a time to tour the property. Be sure to give the sellers enough information about yourself (phone number and address at minimum) to put them at ease about your intentions. Then examine the home closely. Come back a second and even a third time. You'll get to know both the house... and the sellers, better. Remember, relax - they're probably just as anxious and nervous as you.

• Finally, Make Your Offer - Do it directly yourself, or hire an agent to do it for you. Negotiate the price and terms, but always keep it civil. Remember, it's only business. Once you've come to a basic agreement, determine how the paperwork is going to be handled. Perhaps you'll want your attorney or agent to do it. Or maybe the sellers have already made arrangements with someone they know. Open escrow together, and go through the closing procedure (outlined in previous articles).

It's not that hard. And, you could save a bundle if you've done your homework!"

 Buying a home? These eight tips can help make your house-hunting experience positive and rewarding:

1. Location counts.

You've probably heard the old real estate joke about "location, location, location," but the point still bears repeating. Location is crucial. How far are you really willing to commute to your place of employment? How good are the local schools, shopping centers, public transportation, seniors services and other public amenities? Will your new home be next to a vacant lot or a commercial property? Even a picture-perfect dream home can be a mistake if it's in an undesirable location, and a poor-location home can be a particularly bad choice if you anticipate reselling the home within a few years.

2. Make a list.

Do you (and your spouse, if you're married) really know what you need and want in your home? You'll save yourself many hours of shopping (and potentially arguing) if you make a list ahead of time. Zero in on the features you must have, would like to have, definitely don't want and would prefer not to have. Your goal is to find the right home for your family without falling in love with one that doesn't suit your needs. Tip: Start compiling your wish list by thinking about what you like and dislike about your current home.

3. Do your homework.

Not long ago, consumers had very little access to information about recent home sales prices, market trends, homes on the market, neighborhood statistics and the home-buying process. Today, all this information and more is available on the Web. Go surfing. Get educated. Become empowered.

4. Get preapproved for a mortgage.

Your top-dollar home price is a function of your household income, your creditworthiness, interest rates, the type of loan you select and how much ready cash you have for the down payment and closing costs, among other factors. Rather than guessing or estimating how much you can afford to spend, ask a lender or mortgage broker to give you a full assessment and a letter stating how much you're qualified to borrow. The true amount may be much more or much less than you think.

5. Use a checklist.

Touring multiple homes is a confusing experience for most people. Rather than relying on memory, make notes about the homes you visit. Turn your priorities into a personalized home-shopping checklist and use it track the features of each home.

6. Wear comfortable clothing and sturdy shoes.

House-hunting can be tiring, especially if you're relocating to a distant community and want to see a dozen homes in one day. There's no sense in torturing your feet unnecessarily.

7. Be prepared to make an offer.

House-hunting can also be frustrating, especially if you know in your heart you're not really emotionally or financially ready to buy a home. If you're not ready, don't put yourself through the exercise. If you are ready, go through a blank purchase contract ahead of time so you'll know what decisions you'll face when you make an offer.

8. Relax.

Granted, buying a home is a major life-altering event. But it's not worth making yourself insanely crazy or super-duper stressed. Save time at the end of your house-hunting expedition to unwind, calm your thoughts and emotions and keep the whole experience in perspective.

A home is not an island.

Where you want to live is as important as the house itself.

While you can't always have everything you want in a neighborhood, if you know what you need, you'll be better able to set your priorities and make the necessary trade-offs.

What to look for

In general, to protect the value of your home, you'll want to live near public services in a stable, well-lighted area, where the homes are well cared for.

"Good neighborhoods, like beauty, are in the eyes of the beholder," says Eric Tyson, personal financial counselor and co-author of "Home Buying For Dummies," (IDG Books, $16.99).

Obviously, you also don't want heavy traffic, litter, pollution, factories, heavy industry, declining retail areas, blocks of vacant houses or buildings, increasing crime and vandalism.

"Being near excellent schools is important if you have young children. If, on the other hand, you're ready to retire, buying in a peaceful area with outdoor activities may appeal to you, whereas being next to a noisy junior high school is your worst nightmare. Neither neighborhood may suit you if you're the footloose and fancy-free type," said Tyson.

Where to look

The Internet is a quick and easy way to get lots of details about your prospective community.

Packed with data about demographics, statistics, history, trends and maps to show you around, the best online neighborhood profiles will also let you find neighborhoods based on certain criteria, say home price, proximity to schools, amenities and the like.

But don't forget the usual suspects.

"I love the local rags. The street sheets. Community newspapers," says Greg Pennington, a San Francisco resident.

"I have lived in numerous neighborhoods in California the last 20 years, and nothing beats the local newspaper. It will usually give information on local crime, school issues, complaints about the coverage of the larger citywide newspaper. The local rag always proves indispensable," says Pennington.

Local government offices are good sources too. The planning department which can tell you about development issues. The housing and neighborhood offices can background you on current concerns.

The chamber of commerce, local Better Business Bureau and other business groups can clue you in on retail, commercial and corporate issues that may affect the neighborhood.

With schools an important issue for many home buyers, with or without kids, exacting up-to-date information is crucial. School test scores are important and they give you a general idea of the teaching and learning level, but that's not all you need to know.

"You may not have school-age children, but you had better believe that parents to whom you may later want to sell your home will care a great deal. Don't rely on test scores or someone's opinion when assessing school quality; visit the schools and speak with parents and teachers to get a handle on the schools in an area," Tyson said.

Tyson also said, for just about any information, issue or concern, the people who live in the community are your best resources. Time spent in the community before you buy can provide insight unavailable elsewhere. Talk to homeowners and renters alike for the complete community scoop.

And be creative about mining for neighborhood information.

"A friend once told me that he wanted to run by the police station. So I took him and his children. He walked up to the front desk and proceeded to introduce himself to everyone and their mother. After he explained that he was going to be new to their town, he started