The Buyer's Playbook

Understanding Offers

An offer is more than a number. In Seattle, the strongest offer isn't always the highest — it's the one that gives the seller confidence you'll actually close. Here's how offers really work, in plain English.

Part 1

The Anatomy of an Offer

Every offer has the same seven building blocks. Sellers read all of them — not just the price. When we write your offer together, I'll walk you through each one.

💰

Purchase Price

The headline number. Matters most, but not everything — sellers also weigh the certainty you'll actually close at that price.

🏦

Financing Terms

Cash, conventional, FHA, VA, jumbo. Loan amount, down payment, and which lender you're working with. Sellers read this carefully.

🔒

Earnest Money

A good-faith deposit that shows you're serious. Usually 1–3% of the purchase price. Held in escrow, applied to closing.

🔍

Contingencies

The "escape hatches" — inspection, financing, appraisal, title. Each one protects you, but too many can weaken your offer.

📅

Closing Date

When the home becomes yours. Sellers often have a preferred date — matching theirs can be a competitive advantage at no cost to you.

🏡

Possession

When you actually get the keys. Usually at closing, but sellers sometimes need a few days (or a rent-back) after closing to move out.

📝

Personal Letter

Optional, and not always appropriate. When used well in the right situation, can help sellers picture you living there. I'll advise case-by-case.

Part 2

Contingencies: Your Escape Hatches

A contingency is a condition that must be met for the sale to go through. If the condition fails, you can walk away — usually with your earnest money back. They protect you, but each one also represents risk from the seller's perspective.

Inspection
You hire a licensed inspector to evaluate the home. If major issues surface, you can renegotiate, ask for repairs or credits, or back out. In Seattle's market, this is often pre-inspected by the seller before listing — we'll weigh the risk together.
Financing
Your offer is subject to you actually getting the loan. If the lender pulls out, you're protected. Getting fully underwritten pre-approval (not just pre-qualified) makes this contingency much less threatening to sellers.
Appraisal
The lender sends an appraiser to confirm the home is worth what you're paying. If it appraises low, you may need to bring more cash or renegotiate. In competitive situations we sometimes waive this — but only when it makes sense for your situation.
Title
Confirms the seller actually owns the home free-and-clear, with no surprise liens or easements. Almost always kept in — the cost of waiving is rarely worth it.
HOA / Resale Cert (Condos)
For condos: you get to review the HOA's financials, reserves, rules, and litigation history. This is critical for condo buyers. Never skip it without a very specific reason.
Sale of Current Home
Your purchase is contingent on selling your current home first. This is the weakest type of contingency and can knock you out of competitive bidding. We'll talk through bridge loans and other options if this is you.
The Trade-Off

More contingencies = more protection for you, but less appeal to the seller. Fewer contingencies = a stronger offer, but more risk. My job is to get you in the right spot for this specific home and your specific situation — not a one-size-fits-all answer.

Part 3

Earnest Money, Explained

Earnest money is your "skin in the game" — a deposit, usually 1–3% of the purchase price, that you put down when your offer is accepted. It tells the seller you're serious and willing to back up your offer with real money.

Where it goes: straight into an escrow account, not to the seller directly. It sits there until closing, at which point it gets applied toward your down payment and closing costs.

Can you lose it? Only if you walk away without a contractual reason. If a contingency legitimately fails (e.g., the inspection turns up something major and you back out under the inspection contingency), your earnest money comes back. If you just change your mind after contingencies are released, you could lose it.

Seattle Norms

In Seattle, 1–2% is typical for most offers; 3%+ is more common in competitive multiple-offer situations. Going higher can strengthen your position without raising your actual price.

Part 4

Escalation Clauses

An escalation clause says: "I offer $X, but if another offer comes in higher, I'll automatically beat it by $Y, up to a ceiling of $Z." It's how buyers compete without overpaying in multiple-offer situations.

Example: You offer $800,000, with an escalation of $5,000 over any competing offer, capped at $850,000. If a competing offer comes in at $820,000, your offer automatically becomes $825,000. If nothing else comes in, you stay at $800,000.

The beauty: you don't overpay when you don't have to, but you stay in the fight when you do.

When Escalations Work — and When They Don't

Escalations shine in clear multiple-offer situations with a known review date. They're less useful (and sometimes counterproductive) on offers sitting on the market, where leading with your best number shows the seller you're committed. I'll guide the call based on what's actually happening with the listing.

Part 5

What Actually Wins

After two decades of writing winning offers in Seattle, here's what I've learned matters most when sellers are choosing between multiple offers:

1. Price, obviously. But not always the highest number — sellers weigh net and certainty together.

2. Proof you can close. A fully-underwritten pre-approval from a credible local lender beats a generic pre-qualification every time. Cash is king only if it's genuinely cash.

3. Clean contingencies. Short inspection windows, reasonable financing timelines, and a waived appraisal (when appropriate) can beat a higher price with sloppy terms.

4. Flexibility on dates. Matching the seller's preferred closing and possession costs you nothing and can be the tiebreaker.

5. A broker the listing agent trusts. Listing agents advise sellers, and they know which agents actually close. My reputation in Seattle is part of what you're bringing to the table.

The Bottom Line

Writing an offer is part math, part negotiation, part psychology. There's no cheat code — just experience, good information, and a strategy built for this home, this seller, and your goals. That's where I come in.

Ready to Write an Offer?

Every offer is personal. Let's talk about the home you're interested in and build a strategy together.

Call Jeff · (206) 794-1118