Know Your Market Before Writing Your First Offer
In 2026, market conditions vary dramatically by ZIP code. A home in Austin, TX may sit 20+ days and accept offers below list price. The same week, a home in a desirable Boston suburb might receive 8 offers. Pull the last 90 days of comparable sales in the specific neighborhood before writing a number.
Key metrics to analyze: days on market, list-to-sale price ratio, number of price reductions, and months of supply. Your agent should provide these. If they don't, ask explicitly.
Offer Price: The Starting Point
In buyer-favorable markets (6+ months supply): start at 2–5% below list, with a gap to negotiate. In balanced markets (4–6 months supply): offer at or near list. In seller-favorable markets (under 3 months supply): consider offering 1–5% above list, or structure an escalation clause.
An escalation clause automatically increases your offer up to a ceiling if a competing offer is received. It shows good faith without overbidding blindly. Example: "$10,000 above any competing verified offer, up to $485,000."
Terms Matter as Much as Price
Sellers care about certainty, not just dollars. A clean offer with fewer contingencies, shorter closing timeline, and pre-approved financing is often preferred over a higher price with conditions. Consider: reducing your inspection period from 10 days to 7, matching the seller's preferred closing date, offering to lease back the home to the seller for 30 days after closing if they need time to move.
Contingencies: What to Keep, What to Consider Waiving
Never waive: Financing contingency (protects your earnest money if the loan falls through), appraisal contingency unless you have cash reserves to cover a gap.
Consider modifying: Inspection contingency — instead of a full contingency with renegotiation rights, offer an "information only" inspection that lets you walk away but not renegotiate. This is competitive without being reckless.