By Jessica Heffner, Staff Writer Updated 11:15 AM Monday, June 29, 2009
If you feel you're ready to make the plunge into real estate, the first thing you need to do is get preapproved.
Loans that pay you
When you are signing up for a loan, why not get one that pays you? If you get a mortgage through a credit union, you may be eligible for a rebate through the CU Realty program, which pays you part of a Realtors' commission just for using one in the lender's network.
This money can be used as part of the down payment, closing costs or even as a check written directly to you. My husband and I received about $500. Find a credit union that participates near you at cuofohio.org.
Finding a deal
Not every home is a deal, even in today's market. The key is finding homes in your price range, then checking comparable sales to see where they stack up. Zillow.com is a great tool for that. Use your Realtor to also scope out deals.
The best deal is going to be the ugly house - the outdated one with wallpaper, paneling and old appliances. A little "sweat equity," and you can increase its worth and end up with more money in your pocket than buying one that is move-in ready, polished and painted to perfection. If any home is too polished, be wary. Ask yourself, what are the paint and pretty fixes hiding?
The bidding war
When you finally find the house you want, one of the worst things that can happen is a bidding war - when you must bid on the house against another faceless buyer in hopes the seller will pick you as the top dog. Unfortunately, this is what we did face.
So what do you do? We talked to our Realtor, figured our what comparable home sales were in the area, discussed what the home was worth to us and went in with our best offer. It was still under the list price, and we decided if the seller didn't take it, then this was not the home for us.
The strategy worked, because less than 24 hours later, we got the house.