Facebook
X
Pinterest
Copy Link
South King County homes are still frequently going under contract in two to three weeks, and well-priced listings in Kent, Federal Way, and parts of Renton regularly draw multiple offers. Winning one of these situations without overpaying — or without taking on risk you don’t understand — comes down to avoiding a handful of common, expensive mistakes.
Mistake #1: Getting a Pre-Approval Instead of an Underwritten Pre-Approval
A basic pre-approval letter is based on what you told a loan officer, not verified documentation. A fully underwritten pre-approval (sometimes called a “TBD” or “loan commitment”) means your income, assets, and credit have already been verified by underwriting — only the specific property is left to confirm. In a competitive offer, this is a real differentiator that tells a seller your financing is far less likely to fall through.
Mistake #2: Setting an Escalation Clause Without a Real Cap
Escalation clauses (offering to beat competing offers by a set increment up to a maximum price) can help you win without overpaying — but only if your cap is based on real numbers: comparable sales, your actual budget, and your lender’s appraisal expectations. Setting an escalation cap out of adrenaline rather than analysis is how buyers end up over-leveraged on a home that doesn’t appraise.
Mistake #3: Waiving the Inspection Blindly
Waiving an inspection contingency to compete is common in hot markets, but “waiving the contingency” and “skipping the inspection entirely” are not the same thing. You can still pay for an inspection for information purposes — you simply give up the right to negotiate or walk away based on what it finds. Going in completely blind on an older South King County home, where moisture and electrical issues are common, is a real risk worth understanding before you decide to waive.
Mistake #4: Not Understanding the Appraisal Gap
If you win a bidding war above list price, the home still has to appraise at your offer price for your lender to fund the full loan amount. An appraisal gap guarantee (agreeing to cover some or all of the difference between a low appraisal and your offer price, in cash) can strengthen your offer — but only offer what you can actually cover if the appraisal comes in short. Know this number before you’re in a bidding war, not during one.
Mistake #5: Anchoring Only on List Price
In a hot listing, the asking price is often set intentionally low to generate multiple offers — it’s a starting point, not a market value estimate. Buyers who anchor on the list price and add “just a little more” to feel competitive are often still underbidding relative to where the market for that home actually is. Real comparable sales data, not the list price, should set your ceiling.
Get a Strategy Before You’re in a Bidding War
The best time to figure out your approach to escalation clauses, appraisal gaps, and inspection strategy is before you find “the one,” not during a 48-hour offer deadline. Email me at bmackcoldwell@gmail.com and let’s build your game plan in advance.
