People traditionally turn to either an appraisal or a comparative market analysis when determining a property's value. Appraisers, who must be licensed in New Mexico, consider numerous factors such as square footage, construction quality, design, floor plan, amenities and energy efficiency. Other issues taken into account are neighborhood quality and a property's proximity to transportation, shopping and schools. Appraisers also look at lot size, topography, view and landscaping. Comparative market analysis is an informal estimate of market value performed by a real estate agent or broker. Many agents offer a free analysis or property profile in hopes of acquiring a new client. People also can do their own cost comparison using public records maintained by their county property valuation offices. Private companies, using county records, have found a market selling home owners and potential buyers individually prepared reports comparing similar properties.

Contact the Appraisal Institute at 875 N. Michigan Avenue, Suite 2400; Chicago, Ill. 60611; telephone (312) 335-4458 .

A seller's advertised or list price should be treated as only a rough estimate of what he or she would like to receive. Some deliberately overprice, while others ask for close to what they hope to get and a few actually under price their houses with hopes that potential buyers will compete and overbid. The appraisal price is another estimate of value. The appraised price is how much money a professional appraiser estimates the home to be worth and usually is based on "comps," or sales of comparable homes in the same area. Purchase price and sales price is the same thing. Both terms mean the amount of money the successful buyer actually pays out to purchase the home.

It varies from state to state. However, under most State laws, the seller and the sellers' broker, if there is one, are required to disclose all "facts materially affecting the value or desirability of the property which are known or accessible only to him" and which are "not known to, or within reach of the diligent attention and observation of the buyer." In the case of residential properties, the seller must provide the buyer with a Real Estate Transfer Disclosure Statement, which specifies the existence and condition of all known physical attributes of the property. "Sellers are responsible for disclosing only information within their personal knowledge. They don't have to hire professionals to answer the questions on the disclosure form," says real estate writer George Devine author of "For Sale by Owner," Nolo Press, Berkeley, CA 1993. However, sellers must fill out the form in good faith. Sellers must also take "ordinary care" in obtaining the information, which means that they are responsible for including information about the property that they know or, as a reasonable homeowner, should know.

According to experts, sellers do not have to make such dislosures.

The two basic contingencies in a purchase contract are financing and inspections.

Some of them are code violations that should be fixed. Most sellers like to make all minor repairs before going on the market in order to seek a higher sales price. In addition, buyers include a contingency "inspection clause" in the purchase contract which allows them to back out if numerous defects are found. Once the problems are noted, buyers can attempt to negotiate repairs or lowering the price with the seller.

State law requires the seller to complete a real estate transfer disclosure statement. The form includes a checklist of items found on the property, with a lengthy list ranging from air conditioning to washer/dryer hookups. Here is a summary of the things a buyer can expect to see noted on the form: In the kitchen -- a range, oven, microwave, dishwasher, garbage disposal, trash compactor. Safety features such as burglar and fire alarms, smoke detectors, sprinklers, security gate, window screens, intercom. The presence of a TV antenna or satellite dish, carport or garage, automatic garage door opener, rain gutters, sump pump. All amenities such as a pool or spa, patio or deck, built-in barbeque and fireplaces. Practical concerns like central heating, solar panels, condition of electrical wiring, and gas supply. The type of water heater, water supply, sewer system or septic tank also should be disclosed. Home sellers also are required to indicate any significant defects or malfunctions existing in the home's major systems. A checklist specifies interior and exterior walls, ceilings, roof, insulation, windows, fences, driveway, sidewalks, floors, doors, foundation, as well as the electrical and plumbing systems. The form also asks sellers to note the presence of environmental hazards, walls or fences shared with adjoining landowners, any encroachments or easements, room additions or repairs made without the necessary permits or not in compliance with building codes, zoning violations, citations against the property and lawsuits against the seller affecting the property. Also look for settling, sliding or soil problems, flooding or drainage problems and any major damage resulting from earthquakes, floods or landslides. People buying a condominium must be told about CC&Rs or other deed restrictions, if the homeowners association has any authority over the subject property and ownership of common areas with others. In addition, buyers should note that the simple idea of disclosing defects has broadened significantly in recent years to include locally mandated disclosure forms, burgeoning home inspection and warranty industries and a more alert group of brokers and agents who have their own detailed disclosure obligations. Be sure to ask questions about anything that remains unclear or does not seem to be properly addressed by the forms provided to you.

Even in a down market, real estate experts say that price and condition are the two most important factors in selling a home. So, the first step is to lower the price. Also, go through the house and see if there are cosmetic defects that you missed and can be repaired. Secondarily, home sellers should make sure that the home is getting the exposure it deserves through open houses, broker open houses, advertising, good signage and a listing on the Multiple Listing Service (MLS). If the seller is using a real estate agent and the property isn't getting that exposure, find another agent. Another option is to pull the home off the market and wait for overall housing conditions to improve. Finally, frustrated sellers, who have no equity are forced to sell because of a divorce or financial considerations, could discuss a short sale or a deed in lieu of a foreclosure with the mortgage lender. A short sale is when the seller finds a buyer for a price that is below the mortgage amount and negotiates the difference with the lender. In a deed-in-lieu of foreclosure situation, the lender agrees to take the house back without instituting foreclosure proceedings. But these would be considered more radical options than lowering the price.

While many real estate experts recommend that home sellers engage the services of a licensed real estate agent, as many as 16 to 19 percent of all home sellers sell their homes without the use of these services, according to the National Association of Realtors (NAR). An NAR consumer preference survey showed that 30 percent of all sellers who sold their homes themselves would not do so again the next time. Legal issues a seller should consider include discrimination laws, disclosure laws and laws governing advertising. False or misleading advertising is against the law, and certain terms and disclosures must be included if you are advertising the specifics of a financing package. For sellers determined to sell themselves, two sources of information include -- "The For Sale By Owner Kit" by Robert Irwin, published by Dearborn Financial Publishing, Chicago, IL. -- "For Sale By Owner" by George Devine, published by Nolo Press, Berkeley, CA.

In addition to supply and demand, and other economic factors, the time of year you choose to sell can make a difference both in the amount of time it takes you to sell your home and in the ultimate selling price Weather conditions are less of a consideration in some states than in other parts of the country. But generally the real estate market pick up as early as February, with the strongest selling season usually lasting through May and June. With the onset of summer, the market slows. July is often the slowest month for real estate sales due to a strong spring market putting possible upward pressure on interest rates. Also, many prospective home buyers and their agents take vacations during mid-summer. Following the summer slowdown, real estate sales activity tends to pick up for a second, although less vigorous, season which usually lasts into November when the market slows again as buyers and sellers turn their attention to the holidays. Sellers often wonder whether or not they should take their homes off the market for the holidays. Generally speaking, you'll have the best results if your house is available to show to prospective buyers continuously until it sells.

Making your home look as nice as possible may seem obvious. Apparently, it's not, because many sellers don't do much beyond vacuuming the living room rug and maybe cleaning the ring off the bathtub, says George Devine, in "For Sale by Owner," Nolo Press, Berkeley, CA, 1993. Short of spending a lot of money, there are several steps people can take to make their home show better:

• Sweep the sidewalk, mow the lawn, prune the bushes, weed the garden and clean debris from the yard.
• Clean the windows (both inside and out) and make sure the paint is not chipped or flaking.
• Be sure that the doorbell works.
• Clean and make attractive all rooms, furnishings, floors, walls and ceilings. It's especially important that the bathroom and kitchen are spotless.
• Organize closets.
• Make sure the basic appliances and fixtures work. Get rid of leaky faucets and frayed cords.
• Make sure the house smells good: from an apple pie, cookies baking or spaghetti sauce simmering on the stove. Hide the kitty litter.
• Put vases of fresh flowers throughout the house.
• Pleasant background music is a nice touch.

Owned by members of local associations of Realtors, the multiple listing service is a closely-guarded industry information tool that contains descriptions of almost all homes on the market. Despite the trend of real estate firms to unbundle traditional services and offer them individually at set prices, opening up the MLS to the public has been moving very slowly. In fact, members of the public who have filed lawsuits challenging local associations' policies of privacy generally still are being denied access to the MLS, said Gary Gavello, an attorney representing the San Francisco Association of Realtors. However, the courts have leaned toward allowing real estate brokers who are not association members to participate in the service, he said, adding that the rules of San Francisco's Realtors Multiple Sales Service (RMSS instead of MLS) permit access only to licensed member brokers. Barbara Leslie of the Oakland Association of Realtors, said, "If an individual is trying to list on the MLS, they can't do so. The MLS is only for MLS members and to be a MLS member, you must be a licensed real estate agent ... Therefore, there is no individual access to the MLS." Financially-strapped sellers also can turn to one of several national businesses that specialize in helping people sell their own home. "Talk to various brokerage firms and find out who's offering what. It's like getting a loan. You wouldn't just walk into the bank across the street and say. 'I want the loan'," Gavello said. In addition, a number of privately owned MLS-type services are springing up. Anyone now can place or view home-for-sale listings on America Online. Other new avenues are anticipated to open up in the future, including electronic media and interactive television real estate listings, said Bill Jansen, executive vice president of Pacific Union Real Estate Group in San Francisco.

"There are always some sellers who for some reason must sell quickly, writes William H. Pivar, author of "Real Estate Investing From A to Z," Probus Publishing, Chicago, Ill., 1993. "While a very low offer in a normal market might be rejected immediately, in a buyer's market the below-market offer will usually either be accepted or generate a counteroffer. When few offers are being made, an outright rejection of offers becomes unlikely." While it is true that offers at or above full price are more likely to be accepted by the seller, there are other considerations involved. Is the offer contingent upon anything such as the sale of the buyer's current house? If so, such an offer, even at full price, may not be as attractive as an offer without that condition. Is the offer made on the house "as is," or does the buyer want the seller to make some repairs before closing or make a price concession instead? Is the offer all cash, meaning the buyer has waived the financing contingency? If so, then an offer at less than the asking price may be more attractive to the seller than a full-price offer with a financing contingency.

There are two standard contingencies: a financing contingency, which makes the purchase conditional on the buyers' ability to obtain a loan commitment from a lender and an inspection contingency, which allows the buyers to have professionals inspect the property to their satisfaction. A deposit could be forfeited by the buyers under certain circumstances, such as the buyers backing out for a reason not provided for in the contract. The purchase contract must include the sellers responsibilities such things as passing clear title, maintaining the property in its present condition until closing and making any agreed upon repairs to the property.

Closing costs vary from one transaction to another and often total in the thousands of dollars. They may be paid up front or added to the buyer's loan balance. However, anxious sellers may offer to pay some or all of the costs to induce a sale. Here are some basic rules of thumb concerning closing costs: Historically, if one or more real estate agents are involved, their commissions are traditionally based on the sales price and paid by the seller at the time of closing. In recent years, buyers have paid for agent services in some cases. As for some other typical costs one by one:

• Attorney fees
• Title search
• Title insurance for buyer/owner
• Deed preparation fee
• Reconveyance deed
• Recording fee
• Documentary transfer tax
• Pest control inspection report - buyer usually picks inspector and pays for inspection.
• Roof inspection report - buyer usually picks inspector and pays for inspection.
• Other inspections -- buyer usually picks inspector and pays for inspection.
• One-year home warranty -- seller typically pays, though negotiable.
• There are also loan fees, which can exceed 2 percent of the loan amount.

It's critical to price your home right in relationship to the current real estate market and to the conditions prevailing in your local marketplace. Since the real estate market is continually changing, and market fluctuations have an effect on property values, it's imperative to select your list price based on the most recent comparable sales in your neighborhood. A Comparative Market Analysis (CMA) provides the background data on which to base your list price decision. Study the comparable sales material presented to you by the different agents you interviewed initially. If the CMAs are over two or three months old, have your agent update the report for you. If all agents agreed on a price range for your home, go with the consensus. Experts recommend that more than one agent come and do the analysis. Watch for an agent whose opinion of value is considerably higher than the others.

In addition to supply and demand, and other economic factors, the time of year you choose to sell can make a difference both in the amount of time it takes you to sell your home and in the ultimate selling price Weather conditions are less of a consideration in some states than in other parts of the country. But generally the real estate market pick up as early as February, with the strongest selling season usually lasting through May and June. With the onset of summer, the market slows. July is often the slowest month for real estate sales due to a strong spring market putting possible upward pressure on interest rates. Also, many prospective home buyers and their agents take vacations during mid-summer. Following the summer slowdown, real estate sales activity tends to pick up for a second, although less vigorous, season which usually lasts into November when the market slows again as buyers and sellers turn their attention to the holidays. Sellers often wonder whether or not they should take their homes off the market for the holidays. Generally speaking, you'll have the best results if your house is available to show to prospective buyers continuously until it sells.

Here is George Devine's, author of "For Sale By Owner", Nolo Press, Berkeley, Calif., 1993, statements on the Art of Negotiating: "When it comes to meeting and negotiating with potential purchasers, you may feel intimidated or unsure if you have no negotiation experience. There may even be a danger that a savvy buyer will talk you into agreeing to a contract that is not in your best interest. "Never reveal too much information, such as the lowest price you'll take or the fact that you need to sell the house as quickly as possible. Obviously, you don't want to give away as much money by negotiating poorly as you save by selling your own house. If you have any doubt as to your negotiating skill or the best strategy to follow, arrange to get help," he writes.

Low-ball offer is a term used to describe an offer on a house that is substantially less than the asking price. The term often scares real estate agents, as well as sellers, because such offers question whether the home is priced properly. Some experts contend that while any offer can be presented to the seller, a low-ball offer can sour a prospective sale and discourage the seller from negotiating at all. Moreover, unless the house is very overpriced, the offer will probably be rejected. Some persistent buyers overcome these odds by making a raft of low-ball offers until they succeed. Some sellers deliberately overprice, others ask for pretty close to what they hope to get and a few (maybe the cleverest) underprice their houses in the hope that potential buyers will compete and overbid. Most real estate experts encourage buyers to learn about the seller's motivation so that they can get the best deal possible. For example, a lower price with a speedy closing may motivate a seller who must move, has another house under contract or must sell quickly for other reasons. Also, learn what comparable homes have sold for in the area so that you can determine whether the home is priced right.

The list price is the amount an owner would like to receive for a property, according to the "Dictionary of Real Estate Terms," Third Edition, Jack P. Friedman, Jack C. Harris and J. Bruce Lindeman, Barrons, 1993. The sales price is the amount a property actually sells for. It may be the same as the listing price. It may be higher or lower, depending on how accurately the property was originally priced and on fluid market conditions. The listing price may need to be adjusted if offers are not made within the first few weeks of the property's listing period.

"How flexible you should be about contingencies depends on whether you're in a seller's market or a buyer's market, on the condition of your property, on the price you want to get, on how eager you are to sell, and on the quality and quantity of the offers you are getting," wrote Amy Sprecher Bly and Robert W. Bly, authors of "How to Sell Your House, Condo, or Coop," Consumer Reports Books, Yonkers, New York, 1993. "Once contingencies are negotiated, they become part of the deal and are written into your contract," they say. Both the buyer and seller can place requirements on the table during the negotiation phase of a real estate transaction. Whether the buyers will find a the sellers' requirements reasonable, or even achievable, depends on the individuals involved. Financial capabilities usually play a major role in negotiations. Few people can afford to own two homes simultaneously, except for some all-cash buyers.

Sellers sometimes pay for all or a portion of the closing costs involved in the sale of a property, depending on the local real estate market conditions, the other terms of the purchase contract, and the seller's cash and timing considerations. Seller concessions, as they are referred to in real estate jargon, for at least part of the closing costs are more common in a buyer's market than in a seller's market. These concessions will typically be agreed upon during the offer- counteroffer-acceptance cycle. Such concessions would generally be acknowledged in the form of an addendum to the purchase contract. In addition, most lenders will allow a credit from the seller to the buyer for the buyer's nonrecurring closing costs. But they usually won't allow a credit that reduces the amount of the buyer's down payment, or that includes any of the buyer's recurring closing costs, which include such expenses as fire insurance premiums, interest on the buyer's new loan, property mortgage insurance and property taxes. Lender's policies vary on how large a credit for nonrecurring costs they'll allow.

Deciding what stays and what goes is usually up for negotiation. Sellers wanting to take attached items out of a house should specify so in the sales agreement. Appliances that are not built in (washer, dryer, refrigerator, portable dishwasher, portable microwave, freestanding stove) are all negotiable. Sellers who are undecided at the time of listing about which appliances will stay with the house can either leave this section blank or state that the appliances are negotiable. Built-in appliances, window coverings, tacked down carpets, and fixtures permanently attached to the property are assumed to be included.

Desperate sellers will sometimes consider such offers. "While a very low offer in a normal market might be rejected immediately, in a buyer's market the below-market offer will usually either be accepted or generate a counteroffer. When few offers are being made, an outright rejection of offers becomes unlikely," writes William H. Pivar, author of "Real Estate Investing From A to Z," Probus Publishing, Chicago, 1993. Plus, Pivar wrote, "There are always some sellers who for some reason must sell quickly" and will consider a reduced price. There are other considerations: Is the offer contingent upon anything such as the sale of the buyer's current house? Is the offer made on the house "as is," or does the buyer want the seller to make some repairs before closing? Is the offer all cash? An offer at less than the asking price may be more attractive to the seller than a full-price offer with a financing contingency.

Some of them are code violations that should be fixed. Most sellers like to make all minor repairs before going on the market in order to seek a higher sales price. In addition, buyers include a contingency "inspection clause" in the purchase contract which allows them to back out if numerous defects are found. Once the problems are noted, buyers can attempt to negotiate repairs or lowering the price with the seller.

• Is the offer made on the house "as is," or does the buyer want the seller to make some repairs before closing or make a price concession instead?
• Is the offer all cash, meaning the buyer has waived the financing contingency? If so, then an offer at less than the asking price may be more attractive to the seller than a full-price offer with a financing contingency.

Even in a down market, real estate experts say that price and condition are the two most important factors in selling a home. So, the first step is to lower the price. Also, go through the house and see if there are cosmetic defects that you missed and can be repaired. Secondarily, home sellers should make sure that the home is getting the exposure it deserves through open houses, broker open houses, advertising, good signage and a listing on the Multiple Listing Service (MLS). If the seller is using a real estate agent and the property isn't getting that exposure, find another agent. Another option is to pull the home off the market and wait for overall housing conditions to improve. Finally, frustrated sellers, who have no equity are forced to sell because of a divorce or financial considerations, could discuss a short sale or a deed in lieu of a foreclosure with the mortgage lender. A short sale is when the seller finds a buyer for a price that is below the mortgage amount and negotiates the difference with the lender. In a deed-in-lieu of foreclosure situation, the lender agrees to take the house back without instituting foreclosure proceedings. But these would be considered more radical options than lowering the price.

It's critical to price your home right in relationship to the current real estate market and to the conditions prevailing in your local marketplace. Since the real estate market is continually changing, and market fluctuations have an effect on property values, it's imperative to select your list price based on the most recent comparable sales in your neighborhood. A Comparative Market Analysis (CMA) provides the background data on which to base your list price decision. Study the comparable sales material presented to you by the different agents you interviewed initially. If the CMAs are over two or three months old, have your agent update the report for you. If all agents agreed on a price range for your home, go with the consensus. Experts recommend that more than one agent come and do the analysis. Watch for an agent whose opinion of value is considerably higher than the others.

Traditionally, people turn to two methods for determining home value - appraisals and something called a comparative market analysis. Appraisals vary in cost depending on the price of the home, though they average about $300 for a $250,000 house. Appraisers review numerous factors including recent sales of similar properties, location, square footage and construction quality. An appraisal is an estimate of a property's monetary value on the open market; an estimate of a property's type and condition, its utility for a given purpose or its highest and best use. Comparative market analysis is an informal estimate of market value performed by a real estate agent or broker. It is based on like sales and generally offers a range of values including probable market value. Many agents offer a free analysis or property profile in hopes of acquiring a new client, says real estate writer George Devine, author of "For Sale by Owner," Nolo Press, Berkeley, Calif., 1993. "Brokers' opinions, free or not, should be in writing, using professionally-accepted appraisal techniques," says Devine. Individuals can also do their own cost comparison, though doing so may take several hours of research at the county property valuation office. Most offices have indexes to match street addresses and parcel numbers. Private companies, using records from county offices, now offer property price information. Two are:

• Dataquick updates a state-wide data base every seven to 10 days. Called the Express Report, it can be ordered by calling 1-800-999-0152.
• The Home Sales Line allows people to use their telephones to find the exact selling price of houses anywhere in the state 24 hours a day. For more information on this service, call 1-800-585- HOME.
• In addition, private companies, using records from county recorders and assessors offices, also now offer sales price information.

The list price is the amount an owner would like to receive for a property, according to the "Dictionary of Real Estate Terms," Third Edition, Jack P. Friedman, Jack C. Harris and J. Bruce Lindeman, Barrons, 1993. The sales price is the amount a property actually sells for. It may be the same as the listing price. It may be higher or lower, depending on how accurately the property was originally priced and on fluid market conditions. The listing price may need to be adjusted if offers are not made within the first few weeks of the property's listing period.

Seller financing offers benefits to both buyers and sellers including tax breaks for the seller, as well as offering an alternative when conventional loans can't be found. The risks involved are the same risks facing any lender. Is the borrower a good credit risk? Will the property hold enough value over time to allow for the repayment of all loans made against it? Sellers should run a full credit check on the borrower, require hazard insurance on the property and include a due-on-sale clause. There also are financing disclosure and repayment term requirements that should be met.

The interest rate on an owner-carry loan is negotiable. Ask your agent to check with a mortgage broker to determine the current rate on institutional first (or second) loans. Seller financing is usually a little less expensive than conventional financing because loan fees (points) typically aren't charged. The interest rate on a seller-carry loan will also be influenced by current treasury bill and certificate of deposit rates. Sellers usually aren't willing to carry a loan for a lower return than they'd earn if their money was invested elsewhere.

Homeowners who are anxious to sell often consider seller financing, which may include taking back a second note or even financing the entire purchase if the seller owns the home free and clear. Seller financing differs from a traditional loan because the seller does not give the buyer cash to complete the purchase. Instead, it involves extending a credit against the purchase price of the home while the buyer executes a promissory note and trust deed in the seller's favor, writes George Devine, in "For Sale By Owner," Second California Edition, Nolo Press, Berkeley, 1993. These special circumstances must be acceptable to the lender who makes the first mortgage on the property. The necessary paperwork is prepared by the title or escrow company after the terms are worked out between the buyer and seller, according to Devine. It is critical to thoroughly evaluate the creditworthiness of the buyer first. Fear of default makes many sellers reluctant to take back a second. "You may want to get all your cash out of the house, particularly if you are buying another home," Devine states. "This 'I won't take a second' position can change, however, if you find it difficult to sell your house at a decent price otherwise." In addition to bringing a better price, seller financing offers these advantages, according to William H. Pivar, "Real Estate Investing from A to Z," Probus Publishing Company, Chicago, 1993: Taking payments over time allows the seller to avoid making a large outlay for capital gains taxes all at once. Interest rates on seller carryback financing are usually significantly higher than the owner can get from investing the sales proceeds in a certificate of deposit, government bonds or a money market account. The loan is well secured by the real estate, which always can be resold to another buyer if necessary. RESOURCE: IRS Publication 537, "Installment Sales." Order by calling 1-800-TAX-FORM.

Moving from one house to another is seldom easy and fun for adults, and it can be especially troubling for the children. But if parents deal with their children's concerns and needs thoughtfully, much of that distress and discomfort can be avoided.

Children see moves differently than their parents do, and they benefit much less from the change in their comfortable routines, or so it seems at the time. Most often, a change in houses or communities heralds an important step forward for the adult members of the family. The family moves because Daddy or Mommy has a great new job or a promotion as a reward for years of hard work. They move because financial success has allowed the purchase of a bigger and nicer house in a more costly neighborhood. They move because they can finally afford private bedrooms for each child and perhaps a pool in the back yard.

In the 1990's, mobile and hard striving people typically live in a house for about four years and then move on as their careers or fortunes allow. That short time span is only a small percentage of the life-to-date for a 30 or 40 year old, but the same four years is half the life-time of an 8 year old, and it includes almost all the years he or she can remember.

To a parent, this house may be only the place they have lived recently. They think of it as a way station on the road of life. To kids, however, it may be the only home they have ever really know. This is their house, the place they feel safe and comfortable and thoroughly at home. A house is much more than a roof and walls to a child. It is the center of his or her world. A move threatens to take that world away and leave something totally strange in its place. The familiar friends, schools, shops and theaters, the streets, trees and parks - all will no longer exist for them. Everything soon will be strange, and they will live in someone else's world.

The impact of a move on a typical child starts about the time he or she first hears that Daddy has accepted a promotion, and often continues for about a year, until the new house becomes home, and memories of the previous place fade.

It's not usually necessary to announce this big change to children immediately, although they must hear about it from you before someone else breaks the news. Most teenagers see themselves as adult members of the family, and will probably feel they have been left out if they don't hear everything from the first day. But it is probably not a good idea to tell toddlers and preschoolers until they have to know. There is no point in making them worry far in advance. Be sure to announce the move in a totally positive way. You might say how proud you are that Daddy's company has chosen him out of many other employees to manage a new office in Cleveland. Talk about what a beautiful city Cleveland is, how good the schools are and how nice the people are. Tell truthful but very positive stories about how nice the new house will be. Ask them what the favorite things are in their lives now, then try to make them happen in the new home.

If the new home is too far away to allow a visit by the entire family after it has been selected, show the children pictures of it from every angle. Videotape it, if you can. Emphasize the positive views and be sure to include pictures of each child's new room. Try to name the house with some romantic description like "Oak Hill" for the big trees and the sloping lawn.

Sugar coating will help, but since children can quickly see the negative sides of most situations, every parent must plan to deal with their children's worries, fears and sorrows. The children will lose friends they may have known all their lives. They will leave behind their sports teams, their clubs and their dancing teachers. They will have to start over in a new place, making friends, becoming accepted and fitting into different groups.

Younger children need protection from fear of the unknown. Listen carefully to their concerns, and respond quickly to allay their apprehensions. It would be normal, for instance, for a young child to worry that his or her toy box and shelf of stuffed animals might be left behind. Find those anxieties and correct them.

Probably the best tactic is to get the children actively involved in the whole process. Don't just promise to let them decorate their own rooms, for example. Take them to the paint store and let them bring home color swatches. Shop for bed spreads and towels and carpets.

They must leave old friends behind, so find ways to make that parting almost pleasant. Plan a going-away party and let them invite their own guests. Take pictures of everyone and make a photo album. If a child is old enough, send him or her out with a roll of film in the camera and the assignment to photograph the views they will want to remember. Some relationships will be extremely difficult to break and these will demand careful, thoughtful, personalized planning by both parents. How, for instance, do you move a 17 year old 1,000 miles from her steady boyfriend?

Expect that your children may be even more distressed after the move than they were before it. The new house will not be beautiful the night after the moving van leaves, or for months after. The furniture won't fit the rooms. The curtains won't be up, and every spot on the floor will be covered with half-unpacked cartons. The children won't know anyone at school and, if you move during the summer, they may have little opportunity to meet anyone their age.

You may be faced with many more problems in your new community than they will, but remember that you can handle them more easily than they can. They will need your help and you should plan to give them the support they need. After the move, give each of them a long distance telephone call allowance so they can keep in touch with the people back home who matter the most to them. Buy a stack of picture postcards that show positive views of your new community, and encourage them to write good news messages to the friends and relatives they left behind.

To make new friends, make sure the children don't vegetate in front of the television. Get them outside, where neighbors pass by. Have them pass out fliers to do baby-sitting or car washing. Encourage them to participate in as many school activities as they can handle. Get them on sports teams and into clubs. If they - and you - aren't making new friends fast enough, throw a housewarming party for yourselves and invite all the adults and children on the block.

1. Begin with your goals in mind. Have an ultimate scenario of where you're trying to be. What will life be like when you get there? How will it be better than where you are now? Dwell on that picture and write it out, fill up at least a page about how it feels in the new place. Having the goal in front of you at all times energizes you to achieve it, in spite of setbacks and frustrations. Emotions will run high and you need an anchor.
2. Be flexible. In your monetary calculations, overestimate by at least a thousand dollars. In this market, anything can happen between contract acceptance and closing. It could be the inspections reveal areas of concern that the seller is unwilling to fix or the repair costs are higher than the amount limited in the contract. Or the interest rate changes and that affects the necessary down payment and closing costs you will need to come up with. As your real estate team, we will strive to tie up loose ends as quickly as possible, but remember there is no perfect world. Most buyers feel a bit overwhelmed when taking on a new mortgage and the responsibilities of a new home and we've seen many buyers get angry when it seems like the cost just keeps going up. Anger is caused when reality doesn't match up with the expectations you had in your mind. So if you anticipate this happening in advance, you won't get angry. In fact, it'll probably go better than you expected.
3. Trust in the process. There's just so much to do, it's easy to panic. You wonder if it will ever work out. In fact, when we bought our house, we couldn't eat for a day, we felt sick to our stomachs! You think you're taking a big chance, but the truth is you're giving yourself a big chance. Even though you can't see every step of the way, as you move towards your goals, the way opens up. We know that you haven't moved in a long time and it's a major upheaval in your life. But we've been there many many times before, and we'll be looking out for you. Trust that we know the way to get you there.
4. Get knowledge. One thing you'll probably feel during this transition time is out of control. It feels like everyone else has taken over your life. The seller, your lender, the appraiser, the inspectors, they all have the power to say yes or no to your moving plans. We'll try our best to let you know ahead of time what your expenses will be, and what the unknowns are. We'll tie down the loose ends as soon as possible. We'll try to get your loan approved within a reasonable time frame. We'll educate you as best we can and let you in "behind the scenes" so you won't ever feel stupid or out of control.
5. What is your option? When things don't go as smoothly as you had hoped, don't let emotions take over. Always ask yourself , "What is my option?" because there are always options. Let's pretend the lender takes longer than agreed upon to get your loan. He keeps asking you for more and more documentation until if feels like he also needs to know how many gold fillings you have in your mouth! You'll feel upset because you wanted to feel certain about the move and now you still have to live with the uncertainty. You want to say, "Forget it, I'm fed up with this!" But what is your option? Find a new lender and start the process over again? That may take weeks, plus you will have to provide all the paperwork over again. If the lender is trying his best, it may be better to give him a few more days. Each case is unique, but when setbacks occur we've found that asking yourself this question helps to defuse the situation and restore clear headed thinking.
6. Seek entertainment. When there's nothing you can do about the situation, take your mind off of it altogether. Maybe you expected loan approval on Friday, but now it won't come until Monday. You hate being in limbo and feeling powerless. So do something else entirely, maybe something where you aren't powerless. Take a hike, play tennis, get out of town for the day. Watch a movie, pray, or pour yourself into your work. Whatever diversion works best for you, now would be a good time to engage in it. Just forget the situation and refuse to listen to those irritating thoughts when they come into your head. Think about something else instead, and just do it one day at a time.

Even before starting to look at houses, find out what price house or condominium you can afford, says syndicated columnist Dian Hymer. Roughly speaking, Hymer says you can afford to buy a home equal in price to three times your gross annual income.

More precisely, the price you can afford to pay for a home will depend on six factors:

• your income
• the amount of cash you have available for the down payment, closing costs and cash reserves required by the lender
• your outstanding debts
• your credit history
• the type of mortgage you selec
• current interest rates

Homeowners should consider several questions before making a choice between adding on to an existing home or moving up in the market to a bigger house.

• How much money is available, either from cash reserves or through a home improvement loan, to remodel the current house?
• How much additional space is required?
• Would the foundation support a second floor or does the lot have room to expand on the ground level?
• What do local zoning and building ordinances permit?
• How much equity already exists in the property?
• Are there affordable properties for sale that would satisfy housing needs?

Ultimately, the decision should be based on individual needs, the extent of work involved and what will add the most value.

According to the "Cost vs. Value Report,'' published annually by Remodeling Magazine, "State-of-the art kitchens excite buyers, as do graceful, quality-conscious bathrooms."

Among the hottest improvement projects in 1993 were family room remodels and master bed-bath suites. Growing families made bedroom additions more popular than ever, the report states.

Also, consider limitations of your neighborhood. It makes more sense to add on to the smallest house than to further improve the largest one in the area.

"And when trying to decide what type of addition offers the best payback, don't hesitate to play follow the leader: If others in the neighborhood have added family rooms or bedroom wings, it's probably safe for you as well," Remodeling reports.

RESOURCE: "The Do-able Renewable Home," a free booklet available from the American Association of Retired Persons; Fulfillment Department; 601 E St., NW; Washington, DC 20049.

Send for: "A Guide To Homeownership" from Fannie Mae, call 1-800-832-2345. "Home Buyer’s Checklist," National Homebuyers and Homeowners Association; 1050 17th Street. NW; Washington, D.C. 20036.

Just Ask! We can send you an FREE community profile for any area you may be considering a move to in the Continental United States!! To order your FREE COMMUNITY SNAPSHOT, CLICK HERE!

If you want a brief overview of the Albuquerque area, and some surrounding communities, Just Click Here!

• American Association of Retired Persons; 601 E Street, NW; Washington, D.C. 20049 or call (202) 434-2277

As much as a buyer wants to believe that the home they found is perfect, a clear title report ensures there are no liens placed against the prior owners or any documents that will restrict the new owner's use of the property. A preliminary title report provides buyers an opportunity to review matters affecting the property which will be not be covered by their title insurance policy unless they are removed before the purchase is final.

When reading a preliminary report, a buyer's priority is checking the extent of their ownership rights. The report will note in a statement of vesting the degree, quantity, nature and extent of the owner's interest in the real property. The association states the most common form of interest is "fee simple" or "fee," which is the highest type of interest an owner can have in land.

Liens, restrictions and interests of others that are being excluded from coverage will be listed numerically as exceptions in the report. Interests of third parties, such as easements granted by prior owners that limit use of the property, need to be considered. Some buyers attempt to clear these unwanted items prior to purchase, according to the CLTA.

In addition, a list of standard exceptions and exclusions not covered by the title insurance policy may be attached. This section includes items the buyer may want to investigate further, such as any laws governing building and zoning.

The old adage that a picture is worth a thousand words certainly holds true when home buyers are trying to decipher the cryptic code used for home listings. "Finding the home of your dreams should be fun. But first-time buyers who already are struggling to understand financing, purchase contracts and contingency clauses should not be daunted when looking at listings in their local publications. While the writer of a recent newspaper classified advertisement was generous enough to describe their home as "impeccably maintained," others in the same paper save space (and advertising charges) by relying on the word "Clean," "Rmdl" or "Updates." Note that such terms do not convey the same meaning, so be sure to ask exactly what is meant by the seller.

Here are some abbreviations and the likely meaning of each, taken from a recent newspaper classified section.

• assum. fin. -- assumable financing
• dk -- deck
• gar -- garage, garden is usually abbreviated gard.
• expansion pot'l -- may be extra space on the lot, or possibly vertical potential exists for a top floor or room addition. Verify actual potential by checking local zoning restrictions prior to purchase.
• fab pentrm -- fabulous pentroom, a room on top, underneath the roof that sometimes has views
• FDR -- formal dining room
• frplc, fplc, FP -- fireplace
• FSBO -- home is offered for sa
• HDW, HWF, Hdwd -- hardwood floors
• hi ceils -- high ceilings
• In-law potential -- potential for a separate apartment. Sometimes, local zoning codes restrict rentals of such units so be sure the conversion is legal first.
• lo dues -- find out just how low these homeowner's dues are, and in comparison to what?
• pvt -- private
• pwdr rm -- powder room, or half-bath
• upr- upper floor
• vw, vu, vws, vus -- view(s)

Yes -- people with a home computer or access to one could benefit greatly from using one of several software programs on the market today. "The Home Buying Kit" allows users to input data regarding homes they have viewed as well as the terms of various mortgages to find the best deal. It is "extremely easy" to use, states author and self-publisher Steven A. Lyons at the beginning of the 89-page book accompanying the Windows package. His Housing Search is set up so users can create a rating system for each home they have seen. Space is available to write in the address, price, date viewed and contact person as well as specific amenities of the home. The user can then create a variety of lists or tables. Another useful feature allows the user to generate reports according to the various criteria. A home buyer can call up lists of homes automatically ranked by their numerical rating system, location by city, or price.

Meanwhile, keeping track of potential lending sources can be equally confusing. Information could be organized by the date, lender, type of loan and rate lock, among other categories. Adjustable rate loans can be evaluated by inputting the adjustable rate index and margin.

"The Home Buying Kit" also includes programs to complete an affordability analysis. Home price averages for major metropolitan areas are provided in a state-by-state information section, along with information on how to transfer title, conform with state disclosure laws and other issues. RESOURCE: "The Home Buyer's Kit," a book by real estate columnist Edith Lank, Dearborn Financial Publishing, Inc., Chicago, 1994.

I've been looking at several houses. Would you advise buying a starter home in an upscale area, a much bigger home in an older and less expensive neighborhood or a new home on the outskirts of the town? Which would be the better investment? Choosing between a smaller house in an affluent neighborhood, an older, bigger house in a more working class community or a brand new home is not easy. Buyers in this situation may want to start by examining their own priorities and asking the following questions:

• Is the surrounding neighborhood or the home itself the most important consideration?
• Is each of the neighborhoods safe?
• Are the quality of the schools an issue?
• Do any of the areas seem to attract more families with children or adult residents? And where do you fit in?
• As for the return on the investment, home price appreciation is hard to predict. In the late 1980s, the more expensive move-up housing appreciated wildly. But during the recession of the last five years, smaller homes have held their value better than more expensive ones.

Learn everything you can about the association before you purchase a condo. The financial, political and legal condition of the homeowners association is very important to your investment and quality of life. When run properly, homeowners associations maintain the common grounds and keep civility in the condo complex. If you follow the rules, the association should not intrude on your privacy or cost you too much in association dues. Poorly managed associations can drag down property values and make living there difficult for residents.

Start by studying the Covenants, Codes and Restrictions of the association, referred to as CC&Rs, and find out if you can live by them. For example, if the rules prohibit loud music after a certain hour and you like to play your CDs late at night, this may not be the place for you. Don't move in thinking you can get away with violating the rules or change them later because you may find yourself in turmoil with determined neighbors who are firmly in control of the association board. Find out all you can about the association's finances. Beyond reviewing the budget, talk to the association treasurer and find out if dues are expected to increase and if any special assessments are planned. Ask if special inspections have revealed problems with roofs or plumbing that may cause a dues hike or special assessment later on.

Call and meet with the association president. If you are the type of person who despises intrusions into your private life and the president seems more interested in gossip about the residents than maintaining the property, this may not be the right condo complex for you. Speak with residents to get their views on the association's finances, its property manager, how it operates and any politics. Associations are volunteer organizations with elected boards, like a mini-government, so politics can enter the picture and spoil a good thing.

Lastly, take some time to understand how homeowners associations are organized and how they conduct business. Like all real estate investments, the more you know the better off you are.

RESOURCE: A new book on condominium association law, "The Davis Stirling Act in Plain English -- Relating to Common-Interest Development Law," written and self-published by attorney Beth A. Grimm, is available for $29 by writing to Grimm at 3478 Buskirk Ave.; Suite 220; Pleasant Hill, Calif. 94523 or call (510) 674-1500.

• In the kitchen -- a range, oven, microwave, dishwasher, garbage disposal, trash compactor.
• Safety features such as burglar and fire alarms, smoke detectors, sprinklers, security gate, window screens, intercom.
• The presence of a TV antenna or satellite dish, carport or garage, automatic garage door opener, rain gutters, sump pump.
• All amenities such as a pool or spa, patio or deck, built-in barbeque and fireplaces.
• Practical concerns like central heating, solar panels, condition of electrical wiring, and gas supply.
• The type of water heater, water supply, sewer system or septic tank also should be disclosed.
• Any significant defects or malfunctions existing in the home's major systems. A checklist specifies interior and exterior walls, ceilings, roof, insulation, windows, fences, driveway, sidewalks, floors, doors, foundation, as well as the electrical and plumbing systems.
• The presence of environmental hazards, walls or fences shared with adjoining landowners, any encroachments or easements, room additions or repairs made without the necessary permits or not in compliance with building codes, zoning violations, citations against the property and lawsuits against the seller affecting the property.
• Settling, sliding or soil problems, flooding or drainage problems and any major damage resulting from earthquakes, floods or landslides.
• People buying a condominium must be told about CC&Rs or other deed restrictions, if the homeowners association has any authority over the subject property and ownership of common areas with others.

In addition, buyers should note that the simple idea of disclosing defects has broadened significantly in recent years to include locally mandated disclosure forms, burgeoning home inspection and warranty industries and a more alert group of brokers and agents who have their own detailed disclosure obligations. Be sure to ask questions about anything that remains unclear or does not seem to be properly addressed by the forms provided to you.

Home buyers can protect themselves by including an "inspection contingency" in their purchase offer, which will allow them to cancel closing on the deal if an inspector finds problems with the property. As soon as the seller accepts a written offer, the document becomes a legally binding contract. It supersedes any previous oral agreements, so be sure it contains clear references to any promises made by either party during negotiations, writes real estate columnist Edith Lank in her book, "The Home Buyer's Kit," Third Edition, Dearborn Financial Publishing, Chicago, 1994.

The purchase contract could be written to include a contingency for any repairs found to be needed or related items the seller must take care of before closing. If these are not attended to, the buyer could hold the right to delay or possibly cancel the closing. Otherwise, buyers face losing their deposit. There also may be costly legal implications stemming from backing out of a contract.

The buyer usually has the right to choose the inspector and also is responsible for paying for the inspections. In addition to an overall inspection for structural soundness, buyers can request a satisfactory pest control inspection report, roof inspection report or contingency for no potential environmental hazards such as asbestos or radon gas.

Contingency clauses should satisfy the concerns of both the buyer and seller. "The sellers will be nervous about contingent offers," Lank states. "They will be taking their house off the market on your behalf, without any guarantee that the sale will go through. So it's customary to set a time limit on contingencies." For example, Lank says the contract might state that it is "contingent upon buyer's receiving a satisfactory engineer's report on the property within three days of acceptance of this offer" or "contingent upon approval by the buyer's husband when he arrives in town before next Saturday, Sept. 11, at 6 p.m." Buyers also can protect themselves by inserting additional necessary contingencies. Indicate which items like curtains and appliances are to remain with the house. Then stipulate you have the right to personally inspect the home at least 24 hours before closing to make sure all is in order.