1. Know your market. Ask your agent to show you what other homes in the area are selling for and how quickly they have sold. This will put things into perspective for you when making an offer.
2. Know your own wants and needs. It will be easier to face a multiple offer situation if you know what you want prior to submitting an offer. What is more important to you? Home price? Closing costs? Speed of closing?
3. Start Low. Don't start your search at your upper limit. This is a seller's market. If you find a home you love and there are many others that want it too, be the smart buyer and offer slightly more to secure your contract and still make appraisal. Leave enough wiggle room so that you are not throwing your budget. This seems to be harder for some than others.
4. Show Ability to Close. Submit offers with some credibility to make your offer more appealing. Sellers do not only care about the price, they want to know you can close. Attach proof of funds, approval letter, evidence of good credit, etc.
5. Know your Timing. It can get very costly if you need to be out of your current residence because your lease is expiring or you are being relocated and you have nothing finalized on a new home. Have a Plan B in case Plan A falls through.
You MUST realize this is not a buyer's market anymore. You do not have the negotiating power you did a year ago. How many homes will you let slip through your fingers before you make a realistic offer on a home? Be prepared to make full price offers! Get pre-approved before starting your home search. Learn about the neighborhood and the trends before the search so you are informed and prepared to make realistic offers.
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