Article: Keep the offer in play. (price bargaining in home buying and selling)(includes a related article on tax information for buyers and sellers)(Cover Story)

Doug Gass, a ReMax agent in San Jose, Cal., often finds himself in the midst of bidding wars. There's not much land available for building new homes in the San Francisco Bay area, and well-paid high-tech workers are snapping up used homes as fast as they hit the market. "It's not uncommon to sell for $10,000 to even $30,000 over what a seller listed at," says Gass.

Gass helped the Keller family skirt a bidding war when they moved to San Jose from Salt Lake City last year. They decided to buy a three-bedroom stucco home the same Thursday it went on the market at $258,000. They made a full-price offer and gave Gass a dollar limit on how much higher they would go ...

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