Buyers and their agents should plan and position their offer to ensure the best chance that the seller will accept. This is where your agent's salesmanship skills come into play. First, the buyer should be sure that the property is the right one, and be in a position to pay more than the asking price. Just because there may be multiple offers, in which the seller has more than one offer on the property, doesn't mean you don't have a chance. It is necessary to understand how multiple offers work and what will best benefit the seller. The listing agent also plays a large role in determining the best offer. To have a chance at making the successful offer, you need to find out from the listing agent how many offers are expected and what terms are best for the sellers. You will need to know the seller's desires with respect to close of escrow, rent back, and choice of escrow company, as well as any inspections that were done on the property and any other factors may be an advantage to the seller.

Price and terms

All sellers want the highest price and the most favorable terms they can get. Since you are conducting a negotiation, make your terms the most favorable possible if you want to avoid overbidding on the price. Some of the usual favorable terms sellers want are:

• No sale-of-property contingency.

• Short property contingencies (or none at all).

• If property inspections are available prior to presenting the offer, agent and buyer should review the reports and possibly sign and accept them. If the property is in good condition based on the reports, buyer may make an "As is offer."

• A limit to the seller's cost for items to be repaired or fixed if inspection reports are not available.

• A limit to the seller's closing costs - or an offer from the buyer to pay some of them.

• A short financing contingency or none at all.

• Most sellers prefer a short escrow. When a seller needs to retain possession of the home for a longer period of time, you may consider closing escrow sooner and allowing the seller to rent back.

General tips and suggestions

• Be financially prepared to achieve a purchase objective. Offer the asking price, or a little above it, but act within your budget.

• Make the offer as simple as possible.

• Offer the terms that will be most favorably viewed by the seller.

• When a home that is a good deal makes it to the market, its availability window will be short and will close swiftly. Make your offer quickly.

• If possible, meet with the seller in order to create a favorable rapport.

• The seller's agent can best indicate the buyer's level of interest for buying the home, and clarify any concerns or questions that the seller may have about the buyer. The agent also understands the seller's position, which helps the negotiations. For these reasons, the selling agent should meet with the seller to present your offer.

• Obtain a Comparative Market Analysis (CMA) from your agent, even if the list price or the offer you would like to make is over the last comparable sale. Check the incremental price changes of comparable properties that have sold recently. The selling agent should have a copy of the CMA at the presentation.

• If you have time, ask an appraiser to tell you approximately what the property will appraise for.

• If there are less than five offers presented on the same day, make your offer the last. If there are more than five offers, make your offer the first.

• Buyers should be pre-approved, or at least pre-qualified. Pre-approval or a pre-qualification letter should be provided at the offer presentation, and the loan agent should be available for the seller or seller's agent to get any necessary clarifications.

• Having a pre-approval or pre-qualification from a direct lender is more favorable than one made by a mortgage company.

• Buyers may use a common rule of thumb by offering one percent over the price for each competing offer that is being made (this theory may not always work, however).

• Generally, the higher the down payment, the stronger the buyer's chances, since a loan will be easier to obtain. Even if the property does not appraise at the same price, the buyer may still be able to purchase the property.

• A large deposit will help demonstrate the buyer's seriousness to the seller.

• The buyer's agent should ensure that the seller and listing agent feel that the he or she is capable of closing escrow in a professional manner and has the transaction under control.

• Make at least three copies of the offer and supporting documents (one each for the seller, listing agent and the buyer's agent).

• Don't aggravate the seller by nickel-and-diming him or her over insignificant details or amounts.

• Don't present a long laundry list of things to be done or paid for by the seller.

• Ask for a repair allowance from the seller to fix the problems.

• Since contingencies mean that there is a risk the transaction may not close according to the terms of the contract - usually a concern of the seller and the listing agent - keep contingencies to a minimum.

• If your offer is not the first, don't panic. Remember that the seller has the liberty of choosing the best offer.

• If the buyer receives a counteroffer, check whether it is a multiple counteroffer, in which case you need to correspond with the seller's agent as soon as possible.

• By prepared to be flexible. Know when to throw in the towel, since it is sometimes better to give up and move on to another home than to find that you have made a serious mistake.

• Be patient - there will be other properties. This goes for your agent, too!