Rule#1 - Pre-Approval

Do you want to get the best house you can for the least amount of money? Then make sure you are in the strongest negotiating position possible. You see, price is only one bargaining chip in then egotiations, and not necessarily the most important one. Often other terms, such as the strength of the buyer or the length of escrow, are critical to a seller.

Rule #2-Better Than Daily Search

When you first start looking, it's possible that there will be nothing available that you like. So then what? Your agent should then begin hunting for you and watching for new listings that match what you're looking for.

Rule #3-Super Speed

As soon as a listing hits the market, it becomes a race. Who can get there the fastest? In this market, you need to be prepared to drop everything, leavework, or do whatever it takes to see a property. It sounds extreme, but I'm very serious about this. Time is of essence. Don't think that you'll take a look at it this weekend. It could be sold by tonight.And be prepared to make an offer on the spot. That means bring your checkbook and be mentally ready to make a decision.

Rule #4-No Counter Offer

When we make an offer, we'll make it with the intention that the seller will accept it. We don't want to get a counter if at all possible. If the seller counters us, then there's a verygood chance another offer will come in before we can accept the counter.

At first I struggled with this, and I felt that by giving the seller everything they were asking for, I wasn't being a very good negotiator for my buyers. But I got over it. Doing a great negotiation and losing the house isn't good service. Telling the truth about what it takes to win in this market is the kind of service you want.

Rule #5-The Price

Better sit down for this one. The asking price used to be the price the seller hoped to get, and the one that offered closest to that price bought the house.

Rule #6-The Big Picture

Now I know that all this sounds like we're rolling over and playing dead for the seller. We're giving them every thing they want, and then more. But we'll have the last laugh. We'll be laughing because we bought a great house in a rising market, beating out the other buyers! Is it really a big deal to pay a couple thousand more when the house will be worth 20 or 30 thousand more next year?

Our market is appreciating at any where from 10-20% a year right now. That means that if you don't buy the house and it takes you amonth to find another one, the price will be a few thousand higher anyway. So are you really paying too much? It's all in how you frame it in your mind.