Ever attended an auction sale for antiques or real estate? If so, you noticed that the final sale price was determined by the highest bid which determined the final sale price.

It's no different when buying a home, except that sellers post their expected price as the "asking price". But, wait! Here's where home buyers often make a mistake - by offering LESS than the asking price - and end up losing the home to another buyer.

For several years now, our economy has been moving at breakneck speed, and home buyer attitudes have changed. Because housing sales are at record levels, local home inventories are limited. Thus, buyers are competing to purchase homes currently on the market - often at prices higher than the asking price.

Buying a home soon? Conduct a careful home search, study local home prices carefully, and ask plenty of questions. The more you know, the better prepared you will be to make a purchase offer that gets the seller's attention. Remember, the asking price is only a starting point - you may want to consider bidding higher to secure your purchase.

One other tip - include a substantial earnest money deposit with your offer. To sellers, it is a sure sign of your positive intention to complete the purchase.