"We received seven offers. Please submit your highest and best by 5pm tomorrow."
Your heart sinks. You love this house. But how do you compete against six other buyers? Do you offer way over asking? Waive inspection? Write a personal letter?
Multiple offer situations are common in Seattle, especially in spring and for well-priced homes. Winning requires strategy, not just money. Understanding what sellers prioritize and how to structure a competitive offer gives you an edge.
What You'll Learn
- What sellers really care about (it's not just price)
- How to make your offer stand out
- Pre-inspection strategy and when it's worth it
- Appraisal gap coverage (how much to offer)
- Rent-back options and flexible closing
- Personal letters (pros, cons, fair housing risks)
- Real winning offer examples from Seattle
- When to walk away
This article is for you if you're in or expecting a multiple offer situation.
Table of Contents
- What Sellers Really Care About
- Price Strategy
- Earnest Money Strategy
- Contingency Strategy
- Pre-Inspection Strategy
- Timeline and Closing Strategy
- Personal Letters
- Real Winning Offer Examples
- When to Walk Away
- Summary: Key Takeaways
- Next Steps
- Additional Resources
What Sellers Really Care About
Priority Ranking (Typical)
1. Price (40% weight)
- Highest offer usually wins
- But not always
- Other factors matter
2. Certainty (30% weight)
- Will deal actually close?
- Buyer financially qualified?
- Few contingencies?
- Strong earnest money?
3. Timeline (20% weight)
- When can seller move?
- Flexible closing?
- Rent-back option?
- Quick close?
4. Convenience (10% weight)
- Easy transaction?
- Responsive buyer?
- Professional agent?
- Minimal hassle?
Why Certainty Matters
Sellers fear:
- Deal falling through
- Starting over
- Losing backup offers
- Time wasted
What shows certainty:
- Large earnest money (3%+)
- Strong pre-approval letter
- Proof of funds
- Short contingencies
- Appraisal gap coverage
- Pre-inspection (waived inspection)
- All cash (ultimate certainty)
Seattle example:
- Offer A: $950,000, standard terms
- Offer B: $940,000, waived inspection, 10-day close, all cash
- Seller chooses B (more certain, faster)
Price Strategy
How Much Over Asking?
Depends on market (October 2025):
- Hot neighborhoods (Ballard, Fremont, Capitol Hill): 5-10% over asking
- Normal market: 0-5% over asking
- Slower areas: At or below asking
Seattle fall 2025 reality:
- List: $850,000
- Winning offers: $880,000-$935,000 (4-10% over)
- Average: 6% over asking (rates at 6.3% cooling market slightly)
How to determine:
- Run comparable analysis
- Check recent sales in neighborhood
- Ask agent about market
- Set your max based on value, not emotion
Escalation Clause
When to use:
- Multiple offers expected
- You're flexible on price
- Want automatic response
How to structure:
- Initial offer: 3-5% over asking
- Increment: $5,000 typical
- Cap: Your true maximum
See our Escalation Clause article for details.
Appraisal Gap Coverage
What it is:
- You agree to cover gap between appraisal and price
- Up to specified amount
- Shows commitment
How much to offer (October 2025):
- Conservative: $10,000-$15,000
- Moderate: $20,000-$30,000
- Aggressive: $40,000-$50,000+
Seattle example:
- Offer: $950,000
- Appraisal gap coverage: $30,000
- Means: You'll pay $950,000 even if appraises at $920,000
- You need extra $30,000 cash
Risk:
- Costs you cash
- Reduces down payment
- Or requires more cash at closing
When to offer:
- Competitive situation
- You have cash reserves
- Offer is above comps
- Want to show commitment
Earnest Money Strategy
Standard vs Aggressive
Standard (1-2%):
- $850,000 home: $10,000-$17,000
- Shows basic commitment
- May not stand out
Aggressive (3-5%):
- $850,000 home: $25,000-$42,000
- Shows strong commitment
- Differentiates your offer
Seattle competitive offer:
- 3%+ earnest money
- Applied to down payment at closing
- Not extra money, just earlier
Risk:
- Lose if you default
- But protected by contingencies
- Get back if cancel properly
Contingency Strategy
Standard Contingencies
Inspection: 10 days
- Your right to inspect
- Request repairs or cancel
- Standard protection
Financing: 17 days
- Must obtain loan approval
- Good faith effort required
- Protects if financing falls through
Appraisal: 17 days
- Property must appraise
- Can cancel if low
- Protects from overpaying
Shortened Contingencies
Inspection: 5-7 days
- Less time to inspect
- Shows you're serious
- Can still protect yourself
Financing: 10 days
- Faster loan approval
- Requires responsive lender
- Shows you're ready
More competitive:
- Seller has less uncertainty
- Deal moves faster
- Less time for you to back out
Risk:
- Less time to investigate
- Rushed decisions
- May miss issues
Waived Contingencies
Pre-inspection (waive inspection):
- Inspect before offer
- Waive inspection contingency
- Very competitive
Cost: $500-$700 for inspection
Risk:
- Committed to buy even if issues found
- Can't cancel or request repairs
- Only if you really want home
When to do:
- Very competitive situation
- You've seen home multiple times
- Willing to accept issues
- Have cash reserves for repairs
Appraisal waiver:
- Agree to pay price regardless of appraisal
- Requires cash to cover any gap
- Very risky
When to do:
- All cash offer
- Or large cash reserves
- Offer is at or below market value
- Confident in value
Pre-Inspection Strategy
How It Works
Before making offer:
- Schedule inspection ($500-$700)
- Review report
- Decide if you want home
- Make offer waiving inspection contingency
Advantages:
- Very competitive
- Shows commitment
- Seller has certainty
- You know what you're buying
Disadvantages:
- Cost upfront (lose if offer rejected)
- Rushed timeline
- Can't request repairs
- Committed to buy
When Worth It
Competitive situation:
- Multiple offers expected
- You need edge
- Cost is worth it
You love the home:
- Dream home
- Don't want to lose it
- Willing to accept issues
Home is solid:
- Newer or well-maintained
- Low risk of major issues
- Comfortable with condition
When Not Worth It
Slow market:
- No competition
- Not needed
- Save the money
Older home:
- High risk of issues
- Want inspection contingency
- Need protection
Uncertain about home:
- Not sure it's right fit
- Want time to investigate
- Keep contingencies
Timeline and Closing Strategy
Flexible Closing
What it means:
- "Seller's choice of closing date"
- Within reasonable range (30-60 days)
- Accommodates seller's needs
Why it helps:
- Convenient for seller
- Shows flexibility
- May sway decision
Seattle example:
- Seller needs 45 days (buying another home)
- Your offer: "Flexible closing, seller's choice 30-60 days"
- Competing offer: "30 days firm"
- Seller chooses you (more convenient)
Quick Close
What it means:
- Close in 10-21 days
- Faster than standard 30-45 days
- Requires preparation
Requirements:
- Pre-approval ready
- Responsive lender
- Cash for faster close
- All documents ready
When it helps:
- Seller needs to move quickly
- Job transfer
- Financial pressure
- Already moved out
Risk:
- Rushed process
- Less time for due diligence
- Stressful
Rent-Back
What it is:
- Seller stays after closing
- You become landlord
- Seller pays rent (typically per diem)
Why sellers want it:
- Need time to move
- Haven't found new home
- Convenience
How to structure:
- Rent: Typically PITI (principal, interest, taxes, insurance) per day
- Duration: 7-60 days typical
- Deposit: 1-2 months rent
- Liability insurance: Seller maintains
Seattle example:
- Close: May 1
- Rent-back: 30 days
- Rent: $150/day ($4,500 total)
- Seller moves out: May 31
Risk:
- Seller doesn't leave
- Damage to property
- Eviction process
- Delays your move-in
Protection:
- Written agreement (Form 41)
- Deposit held in escrow
- Daily rent (not monthly)
- Seller maintains insurance
Personal Letters
Pros and Cons
Potential benefits:
- Connect with seller emotionally
- Stand out from competition
- Show you'll love home
- May sway decision
Risks:
- Fair housing violations
- Discrimination concerns
- May backfire
- Not always effective
Fair Housing Concerns
Protected classes:
- Race, color, national origin
- Religion
- Sex, familial status
- Disability
What not to include:
- Photos (reveals race)
- Family composition (familial status)
- Religious references
- Disability mentions
- Anything about protected class
What's okay:
- Why you love the home
- Your plans for home
- Connection to neighborhood
- Appreciation for seller's care
Seattle Considerations
Some agents discourage:
- Fair housing risks
- Seller liability
- May not help
Some sellers appreciate:
- Emotional connection
- Know home will be loved
- Personal touch
Best practice:
- Ask your agent
- Keep it brief (1 page)
- Focus on home, not you
- Avoid protected class info
- Don't include photos
Example good letter: "We fell in love with your home the moment we walked in. The beautiful garden you've created and the thoughtful updates throughout show how much you've cared for this house. We can see ourselves hosting family dinners in the kitchen and enjoying summer evenings on the deck. We would be honored to be the next caretakers of your home."
Real Winning Offer Examples
Example 1: Price + Terms Win
Property: Ballard house, list $875,000, 8 offers (Spring 2025)
Winning offer:
- Price: $965,000 (10% over)
- Earnest money: $30,000 (3%)
- Inspection: 7 days
- Financing: 10 days
- Appraisal gap: $30,000
- Closing: Flexible, seller's choice
- Pre-approval: Strong local lender
Why it won:
- Highest price
- Strong terms (short contingencies)
- Appraisal gap coverage
- Flexible closing
- High earnest money
Buyer profile:
- Tech worker, strong income
- 20% down payment
- Cash reserves for gap
- Loved the home
Example 2: Pre-Inspection Wins
Property: Fremont townhome, list $750,000, 5 offers (Fall 2025)
Winning offer:
- Price: $795,000 (6% over)
- Earnest money: $25,000 (3%)
- Inspection: Waived (pre-inspected)
- Financing: 17 days
- Appraisal: Contingent
- Closing: 30 days
Competing offer:
- Price: $810,000 (8% over)
- Standard terms
- 10-day inspection
Why lower offer won:
- Waived inspection (more certain)
- High earnest money
- Seller valued certainty over $15,000
Buyer profile:
- First-time buyer
- Paid $600 for pre-inspection
- Comfortable with condition
- Wanted to win
Example 3: All Cash Wins
Property: Capitol Hill condo, list $650,000, 4 offers (Summer 2025)
Winning offer:
- Price: $680,000 (5% over)
- All cash
- No financing contingency
- No appraisal contingency
- 10-day close
- Earnest money: $50,000
Competing offer:
- Price: $710,000 (9% over)
- Financed
- Standard contingencies
- 30-day close
Why lower offer won:
- All cash (ultimate certainty)
- Fast close
- No contingencies
- Seller valued certainty and speed
Buyer profile:
- Investor
- Cash buyer
- Wanted rental property
- Quick close important
Example 4: Flexible Closing Wins
Property: West Seattle house, list $825,000, 6 offers (Spring 2025)
Winning offer:
- Price: $880,000 (7% over)
- Earnest money: $25,000
- Standard contingencies
- Closing: 60 days
- Rent-back: 30 days free
Competing offer:
- Price: $895,000 (8% over)
- Standard terms
- 30-day close
Why lower offer won:
- Seller needed time (buying new home)
- 60-day close + 30-day rent-back = 90 days total
- Seller valued timeline over $15,000
Buyer profile:
- Renting currently
- Flexible on move-in
- Understood seller's needs
- Agent advised on strategy
When to Walk Away
Red Flags
Bidding war out of control:
- Offers 20%+ over asking
- Way above comps
- Emotional, not rational
- Appraisal unlikely to support
You're at your max:
- Can't afford to go higher
- Would be house poor
- No cash reserves left
- Too risky
Better homes available:
- Other options in market
- Not your dream home
- Can find similar
- Not worth overpaying
Seller playing games:
- Multiple rounds of "highest and best"
- Unclear process
- Suspicious behavior
- May not be acting in good faith
How to Know Your Limit
Before making offer:
- Run comparable analysis
- Set your maximum
- Stick to it
- Don't get emotional
During competition:
- Remember your max
- Don't get caught up
- Walk away if exceeded
- Another home will come
Seattle reality (October 2025):
- Homes come on market regularly
- Rates at 6.3% cooling market slightly
- Don't overpay out of fear
- Right home at right price will come
- Patience pays off
Summary: Key Takeaways
- Sellers prioritize: price (40%), certainty (30%), timeline (20%), convenience (10%)
- Competitive offer: 5-10% over asking (fall 2025), 3%+ earnest money, short contingencies
- Pre-inspection shows commitment, costs $500-$700, very competitive
- Appraisal gap coverage: $20,000-$30,000 typical, shows you'll close
- Flexible closing or rent-back can sway seller
- Personal letters: risky (fair housing), keep brief, focus on home not you
- Walk away if: bidding war out of control, at your max, better options available
- Winning formula: competitive price + strong terms + certainty + flexibility
Next Steps
- Determine your maximum before making offer (run comps, check budget)
- Prepare strong terms (high earnest money, short contingencies, proof of funds)
- Consider pre-inspection if very competitive
- Discuss strategy with agent (what will make your offer stand out?)
- Have cash reserves for appraisal gap if needed
- Be ready to move fast (offers due quickly in multiple offer situations)
- Know when to walk away (stick to your max, don't get emotional)
Related articles:
Additional Resources
Market data:
- Redfin Data Center: redfin.com/news/data-center
- Shows how often homes sell above asking
- Days on market trends
Pre-inspection:
- ASHI certified inspectors: ashi.org
- InterNACHI inspectors: nachi.org
- Cost: $500-$700 typical
Your agent:
- Advises on competitive strategy
- Reviews competing offers (if disclosed)
- Negotiates on your behalf
- Helps you win without overpaying
This article provides general information about multiple offer strategies and should not be considered legal or financial advice. Market conditions change frequently. Consult with your real estate agent and attorney for guidance specific to your situation.