I had a question come in:  

"My realtor is reluctant to make low ball offers due to the market swinging to a "seller’s market" due to the decreasing time before the $8K tax credit stimulus expires on Dec 1."

The person is looking to buy a duplex in which they are living in one side and renting out the other.  They will qualify for the first-time buyer’s credit as long as they close on the property by Dec. 1.

First of all, great work for being persistent in taking action.  For years my wife and I lived in one side of a duplex.  The tenant downstairs basically paid  the mortgage payment.  When put the property on a 15-year note.  When we moved out, it left us in a good positive cash flow position. 

For starters, your realtor should comply with your request to make what ever type of offer you want them to make. Should they give you advice?  Absolutely.  But at the end of the day, they need to make the offer.

Be up front with them – let he/she know what your expectations are.  If they won’t work that way, you simply need to find someone else.  Put friendships aside.  Business is business. 

Don’t hesitate to fire them immediately if they aren’t acting in your very best interest. 

As to the maket right now, we are not in a seller-controlled market.  I believe that’s just sales "puffery". 

True, the tax credit has made a big impact on sales of existing homes. 

But when you are looking for a home that you will live in, I think that’s a little different situation than buying a cash flow property.  When I bought the duplex I lived in, I paid more than I would have if it were stictly as an income property.

Part of that was the good financing I was able to get.  Part of that was emotional, because it was going to be the home I lived in for almost the next 10 years. 

If you are going to get FHA financing, you don’t need to get a 30% discount on the property for it to be a good deal for you. 

Make sure the cash flow is workable. 

 Keep making those offers!