The best asset you can have in buying a home? – Having the right real estate agent. You might say, oh no, they’re all the same. But this actually isn’t true. What’s the difference? Well a good real estate agent can save you time, money, and most importantly – actually get you a house in this competitive market. Why is it competitive? Well, for areas I’ve been looking in, I noticed houses in good condition instantly snatched up by first time home buyers because of the tax credit. Lately, I’ve noticed a bit of inflation (usually by about $8,000 – the amount of the tax credit). In other words, people are comfortable bidding $8,000 above their usual price because of the tax credit.

So if you’re a first-time home buyer, finding the right number to bid may be difficult. The benefit of a good real estate agent is that he or she will find out for you. For example, while every seller wants the highest they can get for the house, some may also value their time and energy more. Knowing what the situation is with the seller can help you not only place a lower bid to win the house, but also beat other higher bids.

The Value of Extra Information

For example, say the sellers are selling their parents’ house and it’s an estate sale. While the asking price is $70,000, they are actually perfectly happy with $60,000 because they don’t need the money desperately and don’t really want to spend time fighting the price. The catch is, because they don’t really care about the house, they also don’t want to spend any time with the repairs the house needs. Knowing this information can help you bid $15,000 lower than asking – just under the condition that you do some minimal repairs. Of course knowing that the house hasn’t had any bids on it will also help you price aggressively. Without this information, you may require the repairs to be done and lose the house to another buyer who’s more flexible.

In another situation, the sellers needed additional time before moving out, so they actually accepted the lesser bid because the buyers were willing to let them stay for an additional two months. Your realtor finding out information such as this can save you thousands on the price of the home. Houses that are seemingly out of your price range may also be available if your realtor works with the sellers. Your real estate agent can strike a compromise by offering things other than money such as additional time in the house or accepting the needed repairs.

So if you’re a first-time home buyer, work with your real estate agent and make sure you’re getting all of the facts before bidding. Understanding the seller’s needs can help you reach a compromise that benefits both sides. Make sure your real estate agent represents you well, and remember, winning a house might not take more money but rather a better understanding of the seller’s situation.

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Tags: Finding a Home, Home Buying, Home Sales, Real Estate Agent