HOUSE HUNTING TIP: You might have only one opportunity to grab the sellers' attention, which means that your first offer may need to be your best. You need to feel confident that the price you're offering -- particularly if it's significantly over the list price -- is reasonable in terms of your long-term housing needs and in light of the fact that the current uptick in many segments of the market may not be a sustained recovery.
Before writing an offer, find out how many offers the agent anticipates. If you can barely afford the asking price and there are seven offers, you might reconsider and wait for an opportunity that will allow you to move up in price, if necessary.
It's hard to compete with an all-cash offer if you need to qualify for a mortgage. Make sure to get preapproved for the financing you need. Some sellers will accept an offer with a loan contingency from a well-qualified buyer over a cash offer if the price is higher. A large cash down payment makes your offer more attractive.
Make the cleanest offer you can without taking on too much risk. Offers made contingent on the sale of the buyers' home have little chance of being accepted. In the example above, four buyers were willing to make offers without any contingencies. That's as clean as it gets.
In this case, the buyers preinspected the property. In 2005 and 2006, buyers waived inspection contingencies to compete. Sometime negative consequences such as drainage or foundation problems were discovered after closing.
But if you're willing to pay to inspect a home before the sellers have accepted your offer, you can gain the information about the property's condition before moving forward. Be sure to ask for the sellers' permission before preinspecting their home.
It's always a good idea to find out as much as possible about the sellers' situation. This may allow you to offer a perk that could swing the deal your way. Recently, buyers of a Piedmont, Calif., home offered the seller 30 days to rent back at no cost.
