Have you talked to your realtor? What did he/she say?
Depending upon the home price range you may very well be competing with cash buyers in addition to buyers with conventional loan. I've seen offers a lot higher than asking price and not just a bit higher, short option period, etc. There are many things that you can do to make an aggressive offer and again, I would suggest that you consult your realtor. Whatever that you put on the contract shows how aggressive you are and if you are not comfortable with that then I would suggest that you wait until the market cools off.
I hope this helps!