First, come ready to buy. Before you head out on your search have a clear list of objectives which include your criteria. Know what amenities are must-haves, what you can live without, and what areas you are interested in.
Next, if you are planning to finance, get pre-qualified. This is probably the most crucial step in today's market. Many clients I've worked with miss out on their dream home because of hesitating on this fact alone. Pretend you are selling your home, if two offers are presented for the same amount of money, but one has already started the loan process and has documentation from the lender stating they are financed vs. a person who will get it to you when they get around to it... who are you more likely to want to do business with? The good news is that you only have to go through the process once, most people don't realize that the pre-qualification letter is "good" for thirty days. This comes in handy should interest rates go up in that time, you'll be guaranteed to keep the lower rate as you have "locked" it in.
Next, strategize with your agent . Your agent should be able to tell you if you'll be encountering a multiple offer situation as soon as the offer is submitted, so expect there to be some negotiations. Unfortunately, they won't be able to disclose how many buyers you are bidding against or what their offers may be, but together you can come up with a strategy that will give you the best opportunity to get your offer chosen. Your agent should discuss market stats that show what comparable homes have been selling for. This will be a good indication of where your offer should be at, above or a little less than list price. In this market, sellers, especially those that are "equity sellers", won't be as inclined to accept less than list in these situations. If paying over price isn't ideal Sellers may ask for certain concessions, such as closing costs, and requests regarding closing dates. Some of these requests may seem reasonable to you, but don't be afraid to stand your ground if others are too far-fetched.
And finally, stick to your guns. If the multiple offer situation goes back and forth, it's easy to get caught up in the excitement of a bidding war. Know what price you won't go above and stick to that price. I'm a firm believer in everything happens for a reason, and you should take the same approach when purchasing real estate. If the ideal home becomes unreasonably expensive or the seller/bank is asking for ridiculous concessions, don't be afraid to walk away. Don't let pride or ego take over. This is still a business transaction so maintain your composure, try to keep your emotions out of it. If it doesn't happen, you will find another... and sometimes it ends up being better than the original, so stay positive!
If you use these simple tips to help you navigate a tough market you'll be signing on the dotted line for your new dream home in no time.
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