Is the Highest Offer the Best Offer?

If you’re a seller with a home listed for sale, you’re likely to get multiple offers from competing buyers. That’s great for your bottom line, but how do you decide which offer is the best one? Is the one with the highest price always the best one to pick?

Well, the first thing that we need to look at is what kind of financing the buyer is working with. Are they using cash or is their offer conventional? How much are they putting down on the home? What kind of loan do they have? Recently, a client had multiple offers on their home, and they ultimately decided to accept an offer that was around $7,000 lower than the highest offer. They chose that offer because the buyer put more money down, which we felt was going to get us across the finish line with a more qualified buyer.

"Many things beyond price can dictate whether or not an offer is right for you." 

Next, consider whether the buyer wrote in any type of appraisal clause. One of the biggest hurdles we’re facing right now is the problem of how to navigate through appraisals, which have recently been coming up less than the sales price of a house. A buyer that is willing to fill in the gap between the appraised value and the sales price is a great buyer to work with.

Third, what kind of inspections are the buyers doing? Do they plan to run the whole gamut of inspections, or are they looking to purchase the home as is? Finally, the quality of your agent and lender has never mattered more than it does today. You need to make sure that you’re working with someone who has a positive reputation and a solid track record of success. In the end, the highest offer isn’t necessarily the best offer, as there are many things that can dictate whether or not an offer is right for you. If you have any questions or would like more information, don’t hesitate to reach out to us. We’d love to help you.