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Understand the process.

Buying real estate is a complex matter and can be especially confusing for the first-time homebuyer. Do yourself a favor and learn as much about the process as you can before you begin. There are plenty of resources on the Internet, and most real estate offices will have pamphlets to explain things in plain language. You may also be able to research the real estate process by attending community-sponsored classes, or you can take a look at books like Home Buying For Dummies by Eric Tyson and Ray Brown, (IDG Books Worldwide, Inc.)

Make high-return improvements to your home before you sell.

There are a number of improvements that you can make to your house that will provide a greater-than-100% return on your initial investment. Chief among these is having your house painted, but you should also consider kitchen and bathroom renovations, adding fireplaces and skylights, and attic or basement conversions. Contrary to popular belief, building a swimming pool is not a good capital investment, and will usually only add 33% of its cost to your home's final sale price.

Price your home realistically.

Sales statistics show that properties that are initially priced too high eventually sell for less than properties that were correctly priced in the first place. Also, over-priced houses can take months or even years to sell, while properly priced houses usually sell in a matter of weeks or even days. When selecting your agent, make sure that each Realtor you interview presents a CMA (or Comparative Market Analysis) that shows what he or she thinks your house is worth. The average or median price will likely be very close to your home's true market value.