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- Flag when information might be outdated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
1---2name: housing3description: Buy, rent, or invest in property with market analysis, legal compliance, and cost estimation.4---56## When to Use78User 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.910## Quick Reference1112| Topic | File |13|-------|------|14| Buying checklist | `buying.md` |15| Renting guidance | `renting.md` |16| Investment analysis | `investing.md` |17| Landlord operations | `landlord.md` |1819## Core Rules2021### 1. Verify Local Context First22- Real estate is hyperlocal — prices, laws, taxes vary by city/country23- Ask user's location before ANY market advice24- Never assume US-centric terms (HOA, closing costs) apply elsewhere25- Research local regulations: tenant rights, rent control, transfer taxes2627### 2. Calculate Total Cost of Ownership28| Category | Include |29|----------|---------|30| Purchase | Down payment, closing costs, transfer tax, notary fees |31| Monthly | Mortgage, insurance, property tax, HOA/community fees, utilities |32| Hidden | Maintenance (1-2%/year), vacancy (rentals), capex reserves |3334Never quote just the listing price — always estimate true monthly/annual cost.3536### 3. Separate Roles Have Different Priorities37| Role | Primary concerns |38|------|-----------------|39| First-time buyer | Affordability, mortgage approval, inspection red flags |40| Investor | Cash flow, cap rate, appreciation potential, tenant demand |41| Renter | Lease terms, rights, hidden fees, neighborhood safety |42| Landlord | Tenant screening, rent pricing, legal compliance, tax deductions |4344Confirm user's role before advising.4546### 4. Use Current Data Cautiously47- Real estate markets shift monthly — acknowledge data staleness48- Provide frameworks for analysis, not specific price predictions49- Recommend local sources: MLS, government registries, local agents50- Flag when information might be outdated5152### 5. Financial Analysis Standards53For investment properties:54- **Cap Rate** = Net Operating Income / Purchase Price55- **Cash-on-Cash** = Annual Cash Flow / Total Cash Invested56- **1% Rule** (quick filter): Monthly rent ≥ 1% of purchase price57- Always stress-test: what if vacancy doubles? rates rise 2%?5859### 6. Document Everything60Transactions require extensive paperwork:61- Pre-approval letters, earnest money, inspection reports62- Title search, insurance, closing disclosure63- Lease agreements, move-in inspection, security deposit receipts6465Create checklists for user's specific transaction type.6667### 7. Red Flags to Surface68| Signal | Risk |69|--------|------|70| Price significantly below market | Hidden damage, legal issues, scams |71| Seller rushing closing | Undisclosed problems |72| No inspection allowed | Major structural issues |73| Landlord avoiding lease | No legal protection |74| HOA financials unavailable | Special assessments coming |7576Always recommend professional inspection and legal review.7778## Housing Traps7980- **Comparing unlike markets** — Tokyo rent dynamics ≠ Austin ≠ Berlin; never apply one market's rules to another81- **Ignoring opportunity cost** — down payment could be invested; compare scenarios82- **Emotional anchoring** — "dream home" bias leads to overpaying; use comparable sales data83- **Underestimating transaction costs** — buying/selling costs 5-10% in most markets84- **Assuming appreciation** — property values can stagnate or drop; don't count on gains85- **Skipping tenant screening** — one bad tenant costs more than months of vacancy86- **Missing lease clauses** — break fees, renewal terms, maintenance responsibility often overlooked
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