When purchasing a home directly from its owner, buyers should try to bargain hard in order to get the best price. But make sure the price you agree to pay is not higher than the market price.

Also important are the details of the sales agreement, which often involve multiple processes to be carried out by the buyer and seller. For those who don't know the relevant transfer of ownership and tax laws inside-out, such an effort might be end up being a waste of time.

Meanwhile, it should be clear who will pay the tax and transfer fees. If the buyers agree to pay, they should ask for a comparable discount from the seller.

For second-hand home hunters who wish to avoid legal tangles, as well as those who simply desire more convenience, using the services of a real estate broker or agent offers a solution. Most brokers' portfolios include many different houses in various locations at varying price ranges from which to choose. Buyers can also feel more confident in making a final decision that the house they are buying is in good condition, as most reputable agents do extensive presale research and agree to sell only homes that are in good shape.

When dealing with a broker, buyers should not forget that there is a price to be paid for the added convenience in the form of commissions averaging 3% of the house's price, which are generally tacked onto the overall price.

The top second-hand property brokers offer a broad selection of styles, locations and prices.

Buyers should also try to choose the right broker. Pick one that is well-known, with a wide choice of quality homes in its portfolio. If you're selling, a good broker will also list your property on several web sites, creating added sales potential.

Foreclosed homes, or non-performing assets auctioned off by financial institutions, are currently popular among those looking for very cheap housing in good locations. In many cases, the price will be lower than the market rate and buyers are usually offered special sweeteners, such as discounted interest rates or an accelerated loan application process.

However, buyers should pay particular attention to the condition of NPA houses, as many of them are in worse condition than those put on the market by brokers or owners. A good rule of thumb is to reserve 30% of the selling price for potential repairs.

To avoid a lengthy legal battle, buyers should make sure there is no one still living in the house. If so, ask that the financial institution clarify the situation.

Many NPA seekers prefer to do their bargain-hunting at property auctions, where the bidding often starts as low as 50% below the current market price.

But before entering a bid, buyers should examine the target house and find out what it is actually worth in order to prevent "auction fever" _ a condition common to inexperienced bidders.

Brought on by the excitement of competitive bidding, a buyer's strong desire to secure a home may see them bid far beyond the house's actual value and, worse yet, in excess of their own purchasing power.

Buyers of houses put up for auction should also check to make sure that the property is vacant, as they would be liable for a lengthy and costly eviction lawsuit should someone still be living there.