Review Your Budget
This might seem like a “no-brainer” but buyers need to sit down and honestly look at spending plans and habits. Take into consideration new cars, vacations, education, etc. to determine what can be put into housing.
This step can be critical if you’re buying in a sellers’ market. Experts recommend that getting pre-approved before making an offer – sellers might be choosing from multiple offers and being able to say that you’re already approved can expedite the buying process and may make the difference in your offer being accepted.
Determine your maximum offer
In a competitive climate, experts also advise knowing how much more than asking price you are willing to offer, especially in a market where other offers are certain.
Seek Out Expert Advice
Realtors can provide comparison data to help determine appropriate offers. They can also help navigate a remnant of the last housing bubble, tougher appraisal standards. If you are willing/capable of offering more than the list price, that decision should be made with expert knowledge of the marketplace and appraisals.