By now, everyone has heard, and understands, the term “down market.” It sounds like a really bad thing, doesn’t it? However, with the help of your Minneapolis real estate agent, you can take advantage of the many wonderful bargains to be had. Here are a few tips on how to do just that:

#1. Do Your Research

Right now, you have a great advantage as a buyer. Condo and loft prices are generally lower and sellers or normally more willing to negotiate. In addition, there are tons of listings available, so you aren’t stuck with only two or three choices. This is where your Minneapolis real estate agent comes in.

Once you know the area you’re interested in, you’ll need to know the price range in the area. Knowing what the expensive, median and low prices are can give you room to bargain. Look online, but also check with your agent. If they don’t know the area themselves, a good agent will have contacts that do.

#2. Get Organized

Organization is essential in a down market. You aren’t the only one looking for a bargain on your new home, and if you find one you like but delay the buying process, you could lose a great deal. To cover for this possibility, make sure you’re prepared to buy at a moment’s notice.

Get pre-approved for a mortgage (not pre-qualified) and have someone on hand for the closing paperwork. Have a home inspector and insurance agent close by, as well as your real estate agent. The more necessary people you have lined up, the better the chance of getting the deal you’re hoping for.

#3. Use Your Agent

If someone wants to sell his or her home in a hurry, you have better bargaining power. This is the best place to take advantage of your real estate agent. You want those motivated sellers, and a good agent knows how to spot them. As well, they can find out if there’s been a price drop and if the Minneapolis condo has been on the market for a long time.

A Minneapolis real estate agent is a great asset in a down market. If you’re going to hire one, make sure you take advantage of their knowledge and expertise, no matter whether you’re selling or buying.

If you’re looking for a bargain on a great Minneapolis loft or condo, I can help. Call me at 612.877.1676 or email me at ben@cityoflofts.com for more information.

Every industry has a few myths. Look at science – according to myth, if you’re a scientist, you’re also a lone wolf and a geek. Now, I’ve known one or two scientists, and they were anything but. Minneapolis real estate agents carry around a few myths of their own, passed around from homeowner to homeowner since the dawn of time.

Myth #1: Every agent drives a brand new, high-end car. Now, I don’t know about other Minneapolis real estate agents, but I tooled around town for several years in a used older-model Honda. Not very hip, but it got me where I needed to go. While it’s true I now have a newer car, it’s definitely not brand new, and certainly not high-end.

Myth #2: Lenders and inspectors give agents kickbacks. Not unless those lenders, inspectors and agents want to go to jail. You see, in 1974, the Real Estate Settlement Procedures Act was passed. The RESPA says receiving or giving kickbacks is illegal. I don’t know about anybody else, but I’d rather keep my real estate license.

Myth #3: Agents make a lot of money. Those that pass this little myth around have never asked an agent. Remember the Honda from Myth #1? Once all of our fees are paid, such as MLS fees, overhead, insurance and other expenses, most agents average a salary of around $36,000. For those that don’t know, middle class is somewhere around $75,000 and above.

Myth #4: Agents will say anything to get a sale. Some agents might lie to you, but most won’t. Personal reputation is especially important in the real estate business. An agent with a reputation for lying soon ends up out of work or without a license. Most agents, like me, are in this business because they love to work with people.

Myth #5: The higher the sale price, the more agents make. Many think that agents would be ecstatic if they sold a house for $10,000 more than expected because of their real estate agents’ commission. If they are, they’re ecstatic for the client, not themselves. While the seller makes around $10,000, the agent makes about $150. With today’s prices, $150 doesn’t go very far and certainly isn’t worth comprising their integrity.

The next time you think about Minneapolis real estate agents and everything you know about them, consider where you got the information. Is it something that “everybody knows” or something you know from experience?

If you’re looking for a professional agent who puts your needs first, you’ve found him.  To learn more about me and the services I offer, visit my website at www.cityoflofts.com.