How to Pick the Best Offer When Selling Your Home

Selling your home is an exciting milestone, but when multiple offers start rolling in, choosing the right one can feel overwhelming. While it’s tempting to accept the highest bid, the best offer isn’t always just about price. Here’s how to evaluate and pick the offer that aligns with your goals while minimizing risk.

1. Look Beyond the Price

A high offer is great, but a strong offer is about more than just numbers. Consider:

• Financing Type: Cash offers often close faster with fewer hurdles, while financed offers depend on lender approval.
• Loan Approval Status: Pre-approved buyers (not just pre-qualified) are less likely to have financing fall through.
• Down Payment Strength: A larger down payment signals financial stability and a smoother closing.

2. Review Contingencies Carefully

Contingencies are conditions buyers include in their offer that must be met for the sale to proceed. The fewer contingencies, the lower the risk of a delayed or canceled deal.

Common Contingencies to Watch For:

• Inspection Contingency: The buyer can renegotiate or back out if significant issues are found.
• Appraisal Contingency: If the home doesn’t appraise at the offered price, the buyer may ask for a lower price or withdraw.
• Sale Contingency: The buyer must sell their current home first—this can delay closing or cause the deal to fall through.
• Insurance Contingency: The buyer must secure homeowners insurance before finalizing the sale. This can be an issue if your home is in a high-risk area (e.g., wildfire or flood zones), leading to delays or deal cancellations.

3. Consider the Closing Timeline

Every seller has different priorities—some want a fast sale, while others may need extra time to move. Compare offers based on:

• Closing Speed: Cash buyers or those with strong financing can close in as little as 14-30 days, while conventional loans may take longer.
• Flexibility: If you need extra time, some buyers may allow a leaseback, letting you stay in the home temporarily after closing.

4. Evaluate the Earnest Money Deposit

The earnest money deposit (EMD) shows the buyer’s commitment. A higher EMD (typically 1-3% of the offer price) means the buyer is serious—if they back out without a valid reason, you may keep the deposit.

5. Work with Your Agent to Compare Offers

Your real estate agent will help you review offers side by side, weighing the financial aspects, contingencies, and timelines. They can also guide you in negotiating stronger terms if needed.

Final Thoughts

The best offer isn’t necessarily the highest—it’s the one that offers the best balance of price, security, and timing. By evaluating contingencies, financing, and closing terms, you can confidently choose the best buyer for your home.