When there's a low inventory of homes and a lot of buyers, a 'sellers market' is in play and buyers can't be too demanding.

The low inventory of homes for sale and the high number of qualified buyers means that sellers have the pick of the litter when it comes to accepting an offer. To increase the chance of being chosen, smart buyers will follow the KISS rule of thumb, also known as "Keep It Simple, Stupid." The more demands, contingencies, and extras a buyer has, the less likely a seller will be to deal with them. Buyers should also avoid offending the seller when it comes to making an offer. In other words, don't make an offer that is ridiculously low.

Other KISS principles include ensuring that all of the buyers' signatures are on the contract; including the street address or legal description on the contract; and making a good-faith money deposit on the house of between 1 percent and 10 percent of the selling price. Even though making a large number of contingency may cause the seller to lean away from you, some contingencies are expected. Sellers should not have issues with a buyer who makes contingencies regarding a seller's written disclosure of known defects or for inspections for such problems as termites, pest control, and radon. Sellers will probably think twice, however, before considering buyers who include contingencies such as a liquidated damages clause, arbitration of disputes clause, or escape clause.

When there's a high inventory of homes and not many buyers, a 'buyers market' is in play and almost the reverse of the above it true.