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Evaluating Offers – Choosing the Best Offer

Monday, May 24, 2021   /   by Catherine J

Evaluating Offers – Choosing the Best Offer

Evaluating Offers – Choosing the Best Offer

Sellers across the country are eager to take advantage of this sellers’ market. It seems like nothing could go wrong for a seller when houses are going under contract within days of listing and sellers have their pick amongst multiple offers. However, there are pitfalls to try and avoid. Not all offers are equal and it can be overwhelming to choose the best offer for your unique situation. Here are some guidelines we can use while evaluating offers:


The Highest Offer Isn’t Always The Best

Many people may feel compelled to simply choose the offer with the highest sales price. However, the highest offer does not mean the highest profit or the strongest offer. Look at what the net sales price would be by comparing any concessions the buyer is asking for or contractual issues that might ultimately result in a lower sales price.


Consider Contingencies

Another factor in comparing offers is to look at what contingencies are listed. A contingency is a condition in the contract that must be met in order for the contract to keep moving forward. The most typical contingencies are for financing, home inspections, house sales, and appraisals. It isn’t common to get offers with no contingencies at all, but the fewer contingencies generally mean fewer obstacles to closing.


When considering an offer contingent on the sale of the potential buyer’s previous home, find out where they are in the sales process. If their current property is already under contract and all contingencies have been cleared it may not as risky. However, if the buyer hasn’t received any offers on their current property, it is a much greater risk.


Down Payment

The down payment that a buyer is making on a property can be an assuring sign. This indicates how much money they have saved toward the purchase and shows financial responsibility. It can be used as a tool to determine financial preparedness of a buyer.


Type of Loan

The type of loan a buyer is pre-approved for can be a comparison point amongst offers. Different loans have various financial requirements of buyers, such as a good credit score, higher down payment, and lower debt to income ratios. Other loans may have stricter appraisal and inspection guidelines that can jeopardize the contract.



While it is easy to just focus on the numbers, don’t forget to consider how an offer may align with your desired timeline of selling and moving. If possible, try to avoid the headache of renting back the property. If two offers are close in price and contingencies, the offer with a closing date that is close to your desired moving date may be more ideal.


Navigating the market of multiple offers is a great position to be in as a seller. However, it can be overwhelming to choose the “right” offer. I look forward to helping you evaluate your options and get top dollar for your home.

Catherine J Smith
6839 Five Star Blvd Ste B
Rocklin, CA 95677
DRE# 01961829

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