What makes a "good" offer good?
The purchase offer is simply a document that spells out the purchase price and terms as well as the contingencies, or conditions, of the sale. In a good offer, one that deserves to be seriously considered, the offering price is based on your home's fair market value and the financing terms are feasible. Also, the purchase offer isn't riddled with expensive and/or unreasonable escape clauses.

Look but don't touch.
Whether you're using a real estate agent or are selling your home on your own, do not sign a contract before consulting your attorney! Let's say you dearly want to follow this wise advice, but the price and terms are fair and agreeable, the contingencies are minimal and the offer will "expire" before your attorney can be reached (most offers have a limited time for you to accept or counter-offer). So you go ahead and sign. If this is the case, then only sign with the condition—written clearly above your signature—that the deal is "subject to my attorney's approval."

You may be told by your real estate agent (or the buyer's agent) that the contract is "standard and customary," and therefore you shouldn't hesitate to sign it. Is your home "standard and customary"? Are your preferences and needs "standard and customary"? Of course not. No pre-written contract can have your own, unique best interests in mind or can adequately address your expectations or needs in the transaction. Your attorney needs to make sure all the provisions are to your benefit, and add or delete some if they're not.

Accept or hold out?
The old baseball saying "Never swing at the first pitch" may not apply here, because your first offer may indeed be the best offer. That's because a new home on the market gets a lot of attention from a lot of people, so it's quite likely you'll get a respectable offer from that early round of buyers. In fact, the longer you hold out waiting for that pie-in-the-sky offering price, the longer it will be on the market, which can severely hurt your negotiating power.

Note: Sometimes it's wise to let buyers know way ahead of time that you will not receive offers until a specified date. That allows ample opportunity for your home to get maximum exposure to all the prospective buyers in your area, thus increasing your chances of getting multiple offers to choose from.

Your response: yes, no or let's see.
You accept the offer by signing it. You reject the offer by not signing it. And you delve into the wonderful world of negotiation when you sign it with contingencies.

Your signature, with or without contingencies, turns the purchase offer into a "contract." But you can't hang the "Sold" sign in your yard quite yet. First you have to settle all the amendments.