As a would-be buyer in a competitive seller's market you might find yourself thinking that you need to...

[1]  offer over asking price

[2]  include an escalation clause

[3]  waive an inspection contingency

[4]  waive an appraisal contingency

Indeed, for some properties (in some price ranges in some locations) the only way to secure a contract to buy the home of your dreams is to do some or all of the above.

But yet, I do encourage you to only make the an offer you are comfortable with... even if you suspect that offer will not succeed.

If a hot new listing is priced at $400,000 and that seems like a reasonable price for the house...

YES -- it is OK to offer $400,000 without an escalation clause, with an inspection contingency and with an appraisal contingency.

Will that offer succeed?  Quite possibly not -- especially if there are multiple offers.

But... if that is the strongest offer you are comfortable making then that is the offer you should make.

It won't necessarily lead to you securing a contract on the house -- but it might -- and if it does, you'll be under contract to buy with contract terms you are comfortable with.