Do you really understand the rules that apply to a Seller's Market?

Everyone, even those not involved in real estate market, know that market is hot. It has been like that since I remember: People got to live somewhere. They either buy a  home to live in it (primary residence) or buy to rent it to someone who does not want to or can not afford to buy (investment property) 
In this seller's market, its pretty simple: Sellers have it easy: They have a commodity which is in short supply and they can sell their home fast and for relatively a lot of $. (You already knew this)
Buyers, for the most part, have a hard time getting their offers accepted for the house they have been looking for all this time.(You probably knew this too)
One reason their offers are not accepted, is because they don't have a correct understanding of the dynamics of a  Seller's Market. 
Take a look at the slide below. As you can see, when inventory is below 6 months, we call it a Seller's Market. Well  in Sacramento county, inventory has been between 1.2 to 1.8 in the past 12 months. That means if magically, over night, our inventory quadruples, we will still be in a seller's market and sellers wont have a hard time selling their properties. 
Now, having established how much of a  seller's market we are in, there are certain things you as a buyer should not do IF YOU REALLY WANT TO GET YOUR OFFER ACCEPTED. 
-You can't low ball. Particularly if the property has just come on the market. (This rule doesnt apply to  an overpriced property which has been on the market for a zillion days) 
-Try not to be too demanding in your offer. I was just writing an offer yesterday. My buyer said"Put it in there that I want seller to paint inside of the closet". I said"If the offer is accepted, we will hire my handyman to come and paint it for you." I didn't want to weaken the offer with something that could be fixed with $100. 
-Get the "I'm not paying more than asking price" out of your mind. Remember: inventory is tight. Multiple offers are received. Only one buyer's offer is accepted and most likely its the highest one with the best terms.