Before I write an offer, I want to learn as much as I reasonably can about the seller’s priorities.

Sometimes price is the biggest factor. In other situations, timing, a particular closing date, or the seller’s need to remain in the home for a period after closing may matter too.

That is why I communicate with the listing agent before we write whenever possible. I want to know whether the seller has identified particular terms as important, whether there is an offer deadline, and whether there are property-specific issues we should understand.

The goal is not to guess what the seller wants. It is to gather the information that is actually available and use it when we structure the offer.

Get Your Financing in Order Before You Offer

If you are financing the purchase, preparation with your lender matters before we ever get to the offer.

A preapproval can show that a lender has reviewed information about your finances and is tentatively prepared to lend up to a certain amount, but lender processes vary, and a preapproval is not a guaranteed loan offer.

Some lenders may be able to complete a more extensive review of your finances before you have a property under contract. If that option is available, it is worth asking about.

I also want to know what is still outstanding. Has the lender verified income and assets? Are there conditions that still need to be satisfied? How quickly can they respond if the listing agent has a question?

The stronger and clearer the financing picture is, the easier it is for a seller to understand the offer.

An asking price does not necessarily tell us what a home is worth or what another buyer will offer. Before deciding how high you are willing to go, I want to look at relevant comparable sales, the property itself, current competition, and what we know about buyer activity.

Then we establish your limit.

That number should make sense for your finances and for how much you value the home, not simply be an attempt to beat an unknown competing buyer.

It is very easy to get emotionally pulled into a multiple-offer situation. I would rather have the conversation about your ceiling before the deadline than after another offer has pushed you into a number you did not originally intend to spend.

Being competitive and overextending yourself are not the same thing.

Be Deliberate About Contingencies

Contingencies are protections written into the purchase agreement. Depending on the transaction, they can address financing, appraisal, property investigations, seller documents, and other matters.

In a competitive situation, buyers sometimes consider shortening, modifying, or removing certain contingencies to make an offer more attractive.

That is not something I treat casually.

Removing a contingency can reduce your contractual ability to cancel or renegotiate if something does not go as expected. California DRE encourages buyers to understand their contingencies and to use qualified professionals when evaluating a property.

If the seller has already provided inspection reports and disclosures, we can review what is available and decide whether additional investigation is appropriate.

I do not believe in waiving protections simply because someone says that is what buyers have to do here. We look at the specific property, the reports, your finances, your risk tolerance, and the competition before making that decision.

Appraisal risk deserves its own conversation when you are financing a home.

For many conventional purchase loans, the lender’s loan-to-value calculation is based on the lower of the purchase price or the appraised value. If you agree to pay substantially more than the property appraises for, the lender may not simply increase the loan to cover the difference.

Depending on the loan and your contract terms, you may need additional cash, attempt to renegotiate, or rely on an appraisal contingency if you have one.

That is why I want buyers to understand the numbers before offering appraisal-gap coverage or removing an appraisal contingency.

Rather than automatically agreeing to cover any possible shortfall, we can discuss whether a defined amount makes sense for your finances and the property.

Protect Your Financing Thoughtfully

A financing contingency can protect if you cannot obtain the loan described in the contract, subject to the agreement and its deadlines.

Removing that protection is a significant decision.

Even a strong preapproval or extensive lender review does not eliminate every financing risk. The property still has to satisfy lender requirements, and changes to your own financial situation can matter too.

Once you are under contract, follow your lender’s instructions carefully. Avoid opening new credit, financing a large purchase, changing employment without discussing it with your lender, or moving substantial funds without asking how they should be documented.

California DRE notes that earnest-money deposits are commonly around 1% to 3% of the purchase price and that buyers can risk losing a deposit if they fail to complete the purchase without a contractual right to cancel.

That is another reason I do not treat contingency removal casually.

An escalation clause generally says that a buyer will increase their offer above a competing offer, up to a specified maximum.

It can sound like a simple way to stay competitive without immediately offering your highest price, but in California, I would approach it carefully.

The California Association of REALTORS® has cautioned that escalation clauses can create drafting and enforceability issues. The wording matters, including how a competing offer is verified and how the final purchase price is determined. Depending on the circumstances, legal advice may also be appropriate before including one.

There is another practical consideration: an escalation clause tells the seller something about how much you may ultimately be willing to pay.

Some sellers may prefer a straightforward offer instead, especially if they plan to ask interested buyers for their strongest terms.

So I do not automatically recommend an escalation clause in a multiple-offer situation. We first need to understand how the seller intends to handle offers, what you are comfortable paying, and whether a simpler offer makes more sense for that particular property.

A competitive offer works as a whole. Price matters, but so can the buyer’s financing, the deposit, contingencies, closing timeline, seller occupancy needs, requests for credits or concessions, and other property-specific terms.

The strongest offer is not necessarily the one with the highest purchase price.

I want every piece of the offer to make sense together. There is little value in strengthening one term if doing so creates a risk elsewhere that you cannot comfortably carry.

This is also why I generally prefer to keep the offer focused on objective financial and contractual terms rather than a personal buyer “love letter.” Those letters can reveal protected characteristics and create fair-housing concerns if that information influences a seller’s decision.

Know When to Stop Competing

This matters just as much as knowing how to strengthen an offer. Sometimes another buyer is simply willing or able to take on more. That does not automatically mean you should follow them.

Before we submit, I want you to know the highest price you are genuinely comfortable paying, how much additional cash you could bring if an appraisal comes in low, which protections you would consider changing, and which risks you are not willing to take.

If another buyer goes beyond those limits, walking away can be the right decision.

Losing a bidding war is disappointing. Winning one on terms that leave you financially uncomfortable or exposed to risks you did not intend to take is not a better outcome.

There is no universal offer that wins every multiple-offer situation.

A strong offer starts with preparation, a price you can defend, financing you understand, thoughtful decisions about contingencies, and a clear picture of what the seller values.

Then we decide how competitive it makes sense to be for that particular home.

If you are getting ready to make offers in Silicon Valley, I’m happy to talk through the process before you are staring at an offer deadline.

We can look at your financing, your comfort level, the areas you are targeting, and how I would approach a competitive situation so you know your options before the right home comes along.

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