In many of today's strong real estate markets, home buyers can expect to face multiple offer situations. Multiple offers are a classic example of economic realities because they appear when the supply of homes for sale is limited and the demand for good-condition homes is strong. Buyers hate multiple offers because they push up home prices and create an extremely stressful home-buying experience. Knowing a few tricks of the trade can make the difference between walking away disappointed and purchasing the home of your dreams at a fair price. How can I make my offer more attractive to the sellers?
Offer the highest price you can. Get preapproved, not just prequalified, for your mortgage and attach a copy of the preapproval letter to your offer. Make as large a downpayment as you can and provide documentation showing the source of your downpayment (e.g., a bank statement). If your current home is in escrow, provide information about that transaction. Avoid unnecessary contingencies. (Waiving your inspection or financing contingency can make your offer attractive, but it's foolish.) Tip: If the equity in your current home is the source of your downpayment, make your offer contingent on obtaining financing, but not on the sale of your home. If your home doesn't sell, you won't have the downpayment and you'll get out under the financing contingency, suggests Bob Stallings, broker/owner of RE/MAX Real Estate Specialists in Long Beach, California. Finally, include a personal note about why you want to buy the home. All else being equal, some sellers are influenced by these communiqués. My offer didn't prevail in a multiple offer situation. Can I find out why?
Neither the sellers nor their agent is obligated to reveal any information about the decision. As a courtesy, agents frequently will point out shortcomings of a rejected offer, but without disclosing details of the accepted offer. "Until a transaction is closed, it's crucial that everything remain unknown in case that property has to come back on the market," explains Carole Geronsin, a Realtor-associate with Prudential California Realty in Anaheim Hills, California. "I sold a property where [the buyer was making] a relocation transfer. A week and a half later, the company decided they were not going to transfer that executive. What would have happened if I had gone around saying, 'It sold for this amount?' You can't do that." Can I submit an offer on a home in escrow?
Yes, but agents say you would be wiser to move on to another home, particularly if there are formal back-up offers. Even if your offer tops the accepted agreement, the sellers would have great difficulty canceling the escrow. My agent says the sellers are getting multiple offers and accepting them only by fax. How can we be certain my offer was considered?
The temptation to suppress a buyer's offer arises when an in-house offer (one from a buyer who is represented by the seller's agent or another agent from the same brokerage company) is competing with an outside offer (one from a buyer represented by a different brokerage company). Even though an in-house offer nets a double commission for the brokerage (and sometimes the agent), the agent must present all outside offers to the seller as well. Failure to present an offer is a very serious ethics violation. The only exception occurs when the seller specifically declines to consider an offer, perhaps because a good offer is being negotiated or the home is already in escrow. If you suspect your offer hasn't been presented, your agent can request a written statement from the seller acknowledging your offer. If the written statement is not provided, your agent can call the seller's agent's broker or manager. Can I knock on the sellers' front door and tell them personally why they should accept my offer instead of the other offers they received?
If you happen to meet the sellers during a scheduled showing, go ahead and compliment whatever you like about their home. Resist that urge to pound on the front door, however. This tactic works occasionally, but many sellers strongly dislike having their privacy invaded. REALTOR® Judy Sheller of The Bizzy Blondes team with RE/MAX Westside Properties in Culver City, California, recalls one instance when an infuriated seller actually ripped up an offer from an intrusive buyer. The agents won't be too thrilled with your behavior either. Should I wait outside the home in my car while my offer is being presented, so I will be able to respond right away?
Years ago, when a seller countered more than one offer, the buyers' agents would rush the counteroffers to the buyers, get their signature, then race back to the seller's home or the seller's agent's office. Whoever returned first with a signed document would win the race and open escrow. To improve their chances of purchasing the home, buyers would wait in their cars outside the home while the offers were being presented to the seller. That way, they could sign any counteroffer and be the first to return it. New provisions in most counteroffer forms have eliminated this silliness by stating that no counteroffer is in effect until it is signed by the buyer and accepted by the seller. This practice allows the seller to wait until all the counteroffers have been returned before making a decision. I have lost seven homes in multiple offer situations. Should I blame my agent?
The answer depends on why your offers weren't accepted. "Buyers always jump to the conclusion that it's the agent's fault. If you're writing offers on houses in the $350,000 range, and all your offers are for $300,000, you're not going to get those houses. You need to be realistic," says Sheller. On the other hand, your agent needs to know how to operate in this market. "I have been in transactions where had an agent been more savvy and more aggressive, the client would have got the property," says Geronsin. She recalls one situation when a buyer's agent called her after the seller had accepted another offer and said his buyer wanted to bid higher. "I said, 'I told you we had multiple offers and you had to come in with your best price. You didn't do it. Now it's too late.' That is the fault of the agent," she says.

By Marcie Geffner

  Here are five recommendations for young people who want to position themselves for homeownership. Granted, few young people spend much time day-dreaming about buying their first home. They're naturally preoccupied with academics, athletics, parties, dating and future career possibilities. Nonetheless, there are a number of good reasons to start learning early in life about the costs of buying a home and the responsibilities of homeownership. For example, a college student's misuse or abuse of credit cards can preclude his or her buying a home later on. Here are five recommendations for young people who want to position themselves for homeownership: 1. Establish good credit habits and a favorable credit history. Get a credit card and use it responsibly. Apply for an automobile loan and make your payments on time every month. If you're renting an apartment, put your own name on the lease and the utility bills and make sure the rent and the bills are paid every month. If you're already struggling with credit card debt or have large student loans, take a free workshop from the non-profit Consumer Credit Counseling Service. Call (800) 388-2227 for information. 2. Start saving for a down payment and closing costs. It's possible to purchase a first home in many parts of the country without much in the way of savings. But in high-cost housing areas, starting to save early can be enormously beneficial because you'll get the advantage of compounding interest and have a longer period of time to grow your investments. Open a savings account or a stock brokerage investment account and make regular deposits. 3. Read some books. Your local library and bookstore probably have at least a few shelves of books about financial management and buying a home. Take notes. Make a financial plan for yourself. You can learn a lot about real estate, budgeting and credit on REALTOR.com® too. 4. Research where you'd like to live. Many young people assume they'll continue living in their own home town when they get older, but people are more mobile than ever and chances are good you'll one day live in another city or even another state. Again, the library, bookstore and Web can be excellent resources for information about housing costs and homeownership opportunities around the country. 5. Tap your real estate agent relatives for advice. Parents, grandparents, aunts, uncles or older cousins in the real estate business can give you good information about the cost of housing in the area where you want to live and what it takes to buy a home. Questions to ask: Is housing affordable in this area? How much money would I need to save in order to buy a home? What advice would you give me about planning my financial future? Would you recommend some books that I might like to read about buying a home? Don't be shy. If you have a question, ask someone in a position to know the answer.

By:Marcie Geffner

1. Keep things clean - talk with your tenants and insist that they have to keep their areas clean and you will find out that your properties are much easier to maintain than you first thought it to be.
2. Investigate for sources of moisture - the most insidious home-killer is water, especially if it gets in places it is not supposed to be. Puddles, leaks or wet patches on the wall or floor are signs that something is really wrong with the building. This problem can be in the plumbing or the structure itself, but it is important that you be able to quickly identify, isolate and repair the source of moisture.
3. Schedule a paint job as needed - a decent paint job will also do more than just make your property look great. A fresh coat of paint will also ensure that water and sun will do less damage of the structure and that you won't have to worry about people thinking that your property looks like a slum.
4. Green-up your property - try to cultivate a lot of plant growth. People love to look at trees and plants and maintaining a garden or lawn will go a long way in making your property look much more than it is worth.
5. Invest in security - people are willing to pay more for security. This can be as simple as putting up a few window bars and dead bolts or it can be as complex as motion-sensors and full-time security guards.

* Low Prices - almost available at a discount to their market price. Discounts of 30% to 50% are not unheard of but the usual discounts are in the more modest range of 5% to 10%.
* Great Home Flipping Opportunities - spend some time, effort and money in doing up the house, you may well be able to resell it at a quick profit.
* Immediate Availability - most lenders will ensure that after the foreclosure, the home is empty before they put in on the market. It is therefore immediately available to buyer who can move in without any delay.
* Better Terms - most lenders are in a hurry to sell off foreclosed properties and will give you a good deal simply to expedite the sale process. You may be able to get away with lower closing costs, a lower down payment and better financing terms.
* Attractive Financing - if you have a decent credit history and a good credit score, the banks or lenders selling the foreclosed property will bend over backwards in offering you flexible financing for the property.

* Clean It and Clear It - If you have every heard the phrase "Out with the old and In with the new" now is the time to test it out on your own space. Oftentimes, less can mean more in terms of style, organization and overall appearance.  If parting with your time worn treasures brings you to tears, try storing them away and rotating accessories every few months.

* Change Your Hardware - Sometimes the smallest changes can make a huge impact on the visual style of a room. Hardware can be anything from cabinet knobs to curtain rods and finials. This can personalize your space; it will feel like you own.  The landlord's hardware to be replaced upon your departure and you can take your new hardware with you.

* Cover Your Furniture - Simply put slipcovers. Although furnishing "covers" have been a common household item for more than a century, today's slipcovers possess the ability to make a dramatic fashion statement.

* Cover Your Walls - This is generally one of the most asked questions we receive from our readers. The options are wide and creative by using the obvious methods - paint or by thinking outside the box and using other materials such as fabric, form core board or, as one dorm resident used, tin foil.

* Lay an Area Rug - Once you have chosen color coordinating rugs for your space, this process is the fastest to implement!