In a seller's market, you need your bid to stand out from the rest of the bids the seller will be getting. Use the following tips to achieve that.
When you have a mortgage preapproval, it means that your lender has thoroughly scrutinized your income and expenses and stated the maximum amount it would be willing to lend you. Preapproval benefits both the property seller and buyer. It saves you the bother of looking at houses that you cannot afford, and it gives confidence to the seller that you have the resources to buy the property. This saves the buyer from wasting resources showing houses and dealing with a buyer that can't afford them. That's why preapproval can even give you preferential treatment from sellers.
Don't Bid Too Low
Some people think that it's good to bid too low so that they can settle at a reasonable price after some negotiations. Starting low is a good strategy to leave room for negotiations, but your bid shouldn't be too low. Going too low may cause you to make an offer that signals to the seller that you aren't serious with your bid. Compare your house to similar houses in the neighborhood and make an offer slightly below what you expect to pay for the house eventually. That way the seller knows that you can reach an agreement and will be more inclined to take you seriously.
Be Specific with Your Offer
The seller is more likely to take you seriously if you make a specific offer than if you make a round offer just like other potential buyers. Compare two offers, one of $150,000 and another of $148,750. The first round figure is what you make when you haven't done any calculation or research but just figure the house should sell for that amount.
The second (specific) figure is what you would arrive at if you researched the house and did a few calculations. It's not easy (though possible) to arrive at a round figure after, say, computing the cost of a house by multiplying the prevailing prices of houses in the area in dollars per unit area by the total area of the house. Even the seller will be impressed by how much thought you have given to the purchase.
Hopefully, the tips above will help you get the property you deserve at the right price. Think about enlisting the services of a real-estate agent if you don't have confidence in your bidding abilities.