What Should I Offer on a House That Just Hit the Market?

A client texted me last week at 6:47 PM: "This house just went on the market today and I want to make an offer tonight." I love the urgency — but a winning offer isn't about speed alone. It's about strategy. So let me break down how I approach offers on new listings, because the answer isn't always "go higher."

Before You Write the Number

Before I write a single number on an offer, I do three things:

• Pull the comparable sales. Not the active listings — the closed sales in the last 3–6 months within a half-mile radius, same property type, similar condition and size. This tells me what the market has actually paid, not what sellers are hoping to get.
• Assess the seller's motivation. Has the listing been on the market before? Has it been price-reduced? Is there a tenant situation, estate sale, or relocation timeline? Motivated sellers respond differently to offers than "let's see what happens" sellers.
• Evaluate the competition. In the first week, how many showings has the property had? Is the listing agent telling me there are multiple offers (and can I verify that)? What does the absorption rate look like for this price point in this neighborhood?

At Ask, Below Ask, or Above Ask?

Here's my framework:

• At or near asking price: If the property is well-priced based on comps — meaning the seller did their homework and the price is supported by recent sales — offering at or slightly above ask is reasonable. In a competitive situation, you might go 1–3% over asking if the comps support it.
• Below asking price: If the property has been on the market for more than 14–21 days with no offers, or if comps suggest the property is overpriced, there's room to negotiate. This is where data-driven pricing pays off — I'll show you the comp gap and suggest a number that's aggressive but defensible.
• Above asking price: In South Florida's current market, well-priced homes in desirable neighborhoods still attract competition. If you're in a multiple-offer situation, going above ask might be necessary — but only up to the point where the property still makes financial sense. I'll cap it at what the comps support plus a reasonable premium for competition.

The Strategy Behind the Contingencies

The offer price is only part of the equation. The contingencies can be just as powerful:

• Inspection contingency: I almost always recommend keeping this one. In South Florida, the inspection risk is too high to waive. But I can shorten the inspection period to 7–10 days to show the seller you're serious and moving quickly.
• Financing contingency: If you're getting a mortgage, you need this. Without it, you're on the hook if the loan falls through. Some buyers shorten the financing contingency period to 14–21 days to make the offer more competitive.
• Appraisal contingency: This protects you if the appraiser values the home lower than your offer. In competitive situations, I sometimes include an appraisal gap coverage clause — "I'll cover up to $X of an appraisal gap" — which gives the seller confidence without leaving you exposed.
• Escalation clause: This is an automatic bid-up mechanism. "I'll offer $X, and I'll beat any other offer by $Y, up to a maximum of $Z." This can be effective in multiple-offer situations, but it exposes your ceiling to the seller. I use it strategically, not by default.

How to Win Without Overpaying

This is the art of it. A winning offer isn't always the highest — it's the one that works best for the seller. That might mean:

• A strong earnest money deposit ($10K–$25K+ on a $500K+ home shows commitment)
• A flexible closing timeline that matches the seller's needs
• A personal letter (yes, they still work in some situations)
• A clean, well-structured offer that's easy for the seller's attorney to review
• Being pre-approved (not just pre-qualified) — this matters more than most people realize

I've won offers against higher bidders by structuring the deal more favorably — shorter closing, larger earnest money deposit, or accommodating the seller's preferred timeline. Strategy beats brute force.

The bottom line: let's look at the comps, understand the seller's position, and craft an offer that's competitive and smart. No emotion, no ego — just a strategy designed to get you the house at a price you'll feel great about.