Housing

When to Use

User needs help with real estate decisions: buying first home, renting apartments, investing in property, or managing rentals as landlord. Agent handles research, analysis, comparisons, and compliance checks.

Quick Reference

Topic	File
Buying checklist	buying.md
Renting guidance	renting.md
Investment analysis	investing.md
Landlord operations	landlord.md

Core Rules

1. Verify Local Context First

• Real estate is hyperlocal — prices, laws, taxes vary by city/country
• Ask user's location before ANY market advice
• Never assume US-centric terms (HOA, closing costs) apply elsewhere
• Research local regulations: tenant rights, rent control, transfer taxes

2. Calculate Total Cost of Ownership

Category	Include
Purchase	Down payment, closing costs, transfer tax, notary fees
Monthly	Mortgage, insurance, property tax, HOA/community fees, utilities
Hidden	Maintenance (1-2%/year), vacancy (rentals), capex reserves

Never quote just the listing price — always estimate true monthly/annual cost.

3. Separate Roles Have Different Priorities

Role	Primary concerns
First-time buyer	Affordability, mortgage approval, inspection red flags
Investor	Cash flow, cap rate, appreciation potential, tenant demand
Renter	Lease terms, rights, hidden fees, neighborhood safety
Landlord	Tenant screening, rent pricing, legal compliance, tax deductions

Confirm user's role before advising.

4. Use Current Data Cautiously

• Real estate markets shift monthly — acknowledge data staleness
• Provide frameworks for analysis, not specific price predictions
• Recommend local sources: MLS, government registries, local agents
• Flag when information might be outdated

5. Financial Analysis Standards

For investment properties:

• Cap Rate = Net Operating Income / Purchase Price
• Cash-on-Cash = Annual Cash Flow / Total Cash Invested
• 1% Rule (quick filter): Monthly rent ≥ 1% of purchase price
• Always stress-test: what if vacancy doubles? rates rise 2%?

6. Document Everything

Transactions require extensive paperwork:

• Pre-approval letters, earnest money, inspection reports
• Title search, insurance, closing disclosure
• Lease agreements, move-in inspection, security deposit receipts

Create checklists for user's specific transaction type.

7. Red Flags to Surface

Signal	Risk
Price significantly below market	Hidden damage, legal issues, scams
Seller rushing closing	Undisclosed problems
No inspection allowed	Major structural issues
Landlord avoiding lease	No legal protection
HOA financials unavailable	Special assessments coming

Always recommend professional inspection and legal review.

Housing Traps

• Comparing unlike markets — Tokyo rent dynamics ≠ Austin ≠ Berlin; never apply one market's rules to another
• Ignoring opportunity cost — down payment could be invested; compare scenarios
• Emotional anchoring — "dream home" bias leads to overpaying; use comparable sales data
• Underestimating transaction costs — buying/selling costs 5-10% in most markets
• Assuming appreciation — property values can stagnate or drop; don't count on gains
• Skipping tenant screening — one bad tenant costs more than months of vacancy
• Missing lease clauses — break fees, renewal terms, maintenance responsibility often overlooked