Buying a house is not unlike sky diving. Whether you've been doing it for years, or are trying it for the first time, buying a satisfying home in today's housing market can be terrifying. However, for an informed buyer, haggling your way to your dream home can be exhilarating. Here are five key things every potential buyer should know to make sure their experience is a smash, not a crash.

1. Know your budget. While this may seem simple, many people forget to look at all the costs associated with buying a new home. The price of the house, taxes on it, and upgrades or repairs are something that everyone should research, but what about the other, less expected costs? Do a little research before you buy the house. Also, remember- closing costs, which generally run from 1-6% of the price of the house, can sometimes be included in your loan or mortgage. Always ask and see if you can get that extra amount lent to you.

2. Location, location, location. Stores in a hard-to-access area of town are bound to fail, an umbrella stand in a desert is unlikely to do well, and a house in a valley of an area that receives a large amount of rain each year will probably flood and become subject to water damage. Always research the area your house is in before buying- and not just the physical land around it, but also the people. A beautiful, affordable house just might be surrounded by the neighbors from hell. Make sure you know what the environment around your house is like before considering a move.

3. The history of the house. Alright, so you have looked into the hidden costs of buying a house, and the area around it. But what about pre-existing conditions that might not be obvious? Any sort of bug infestation, or mice, or even squirrels in the attic, can cause your savvy buy to become a costly nightmare. There's no ways to be entirely sure that the house you want is pest free, but when you view the house, ask.

4. The city council. If you are planning to renovate your house, or do anything involving a permit, it is a good idea to look at the policies of the city the house is in. If you want to start a business from home, make sure the zoning laws will allow this, and will allow for reasonable amounts of signage and advertising. Some towns are very strict about how large and how many signs may adorn a home business, so if your plans include one, make sure you are satisfied with the allowances. Also, making sure that the city board seem generally competent and somewhat easy to work with is a good idea.

5. With luck, your new home is just as perfect as it seemed before you bought it, sometimes things get overlooked. To prepare for any sort of problem, a good rule of thumb is to buy a house that is $5,000 to $8,000 below your maximum budget. This leaves you a little leeway if some sort of small problem pops up once the house is in your possession. Should this precaution turn out to be unnecessary, then you already have the funds gathered to pay back portion of your mortgage or loan.

Buying a home can be a difficult experience, one that brings new meaning to the saying 'buyer beware'. However, if you make careful and informed decisions, finding a home that's right for you is not only possible, but easy.