First-time homebuyers don't always know where to begin in the process. That is why it is important to have a game plan even before you begin searching the myriad online galleries of house photos. From Dottie Herman, the CEO of Prudential Douglas Elliman, comes three important steps you shouldn't skip when you are beginning the process of searching for and buying a home. Follow these, and you'll be closer to getting the house you want for the price you are willing to pay!

Determining the Right Price
What is the right price? This is a very good question. Herman says: “Price is what the home should be worth today. But sometimes people don’t price it right, so what you really want to look at is fair market value." But before you can get the answer, you need to do a little work. The right price is not always the listing price. The right price comes down to the amount of money you are willing to put forth in order to secure the home as yours. The price will be different for every buyer. Keep in mind that listing prices always are negotiable, and lower prices result when certain conditions come together. For example, is it a buyer's market or an owner's market? What are the prices of similar homes in the same neighborhood and area? Compare those initial listing prices with the final home sale price to get a better idea of what you should be paying for a home in the neighborhood where you want to live. “Cost is [just] a measure of the past," Herman says, and that means you'll need to determine what kind of prices have been coming out of your neighborhood in the past.

Finalize a Budget
Before you begin searching for a home, it's important to determine a budget. By knowing the range you are willing to work in, you will save yourself a lot of heartache and energy by immediately ruling out houses that are too far outside of your price range. Your real estate broker can help you determine what is most comfortable for you and can help you crunch numbers using different hypothetical loan models. So hire a broker as soon as possible, as he or she can act as your tour guide, advocate, and advisor through the entire home search process.

Meet Your Property in Person
You cannot invest in something that you haven't seen, so get out of your computer room and into the neighborhood. Go with your broker on a tour of homes. Feel the wood, tap the walls, and imagine yourself in the yard and on the deck. Note the good features of the home -- even if it is outdated. Believe it or not, the views from your potential house can affect the listing price of the home. So even if it is outdated, remember that you can renovate but you can't change a view oftentimes. Look out for good views and hold onto those for the future. In addition, by going to see the home, you will know exactly what the visible flaws are. Herman says that this can give you more negotiating leverage.