How to Evaluate Offers—It’s Not Just About Price

Photo Source: Architectural Digest

When multiple offers come in, it’s easy to fixate on the purchase price. After all, every seller wants to get top dollar for their home. But savvy sellers know there’s more to a strong offer than just the number on the contract.

Here’s how to evaluate offers holistically so you can make the best possible decision.

Look at the Financing Type

Is the buyer paying cash or using a mortgage? Cash offers typically come with fewer contingencies and faster closings, which can be appealing—even if the offer is slightly lower. If financing is involved, take note of the lender, pre-approval status, and loan type.

Consider the Contingencies

Contingencies are conditions the buyer must meet for the deal to move forward. Common ones include:

• Home inspection

• Appraisal

• Sale of the buyer’s current home The fewer the contingencies, the stronger the offer. A high offer with multiple contingencies may be riskier than a slightly lower offer that’s more straightforward.

  
  

Review the Earnest Money Deposit

This is the money the buyer puts down to show they’re serious. A larger deposit can signal strong intent and commitment. It also offers you some protection if the deal falls through without valid cause.

Pay Attention to Timing

How soon can the buyer close? Do they need extra time to move in, or are they flexible with your timeline? If you’re juggling a purchase on your end, a clean and well-timed offer can make a big difference.

In Summary:

The best offer isn’t always the highest—it’s the one that best meets your goals. Work closely with your agent to review each offer’s terms, contingencies, and timing. When evaluated as a whole, you’ll be in a better position to choose the offer that truly aligns with your needs and priorities.

Whether you're selling in a fast-paced market or a slower one, thoughtful offer evaluation ensures you're not just getting the best price, but the best outcome.