The real estate industry has seen the negative affects of the first-time home buyer credit. While the $8,000 tax credit was a wonderful advantage for sellers and buyers alike, it created an artificial excitement in the real estate market. In fact, since the April 30 deadline to qualify for the credit, contracts to buy homes have decreased each of the last three months.

In recent interviews, the Obama administration has dodged the question on a second round of tax credits, saying its not a high priority, but never saying they won't do a second round of credits. While many in the real estate industry have advised against it, obviously home buyers liked the credit.

For the homeowner who is underwater in their mortgage, this is not a good thing. When there is a possibility of a second round of credits, buyers will tend to wait until there is more certainty to buy. Plus, the April 30 deadline created a sense of urgency that pushed many potential buyers to go ahead and purchase, creating an even smaller demand pool.

With this uncertainty, its imperative you find an agent who understands how to explore all your options and has the experience you need to negotiate with the bank for the absolute best deal for you.