How to Pick the Best Offer on Your Home: A Seller’s Guide to Smart Decisions
Tips for Buyers and Sellers
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By Natalie Boyle, REALTOR®, Founder of Verso Homes (DRE #01329012)
There are more homebuyers than homes to buy right now. That means many sellers find themselves in the fortunate position of having multiple offers to sift through, with many offering more than listing price. Welcome to a hot seller’s market! While having a bunch of buyers throwing money and promises at you is a wonderful problem to have, you still need to know how to choose a single offer. (Hint: It’s not always the highest one.)
The strongest offer for one seller might be the highest offer price; for another, it could be the slowest closing window. If the seller wants to avoid making repairs, maybe it’s the offer without an inspection contingency.
Here’s how to choose from multiple offers on your house and pave the way for a smooth sale.
Let Your Agent Be Your Expert Guide
Bidding wars aren’t as easy to navigate as you might think. While this may be your first time dealing with multiple offers, an experienced real estate agent is an old hand at this. Tap into their wisdom for strategies on getting the strongest offer for your house and closing the deal on time.
Make Sure the Buyer Can Actually Pay What They’re Offering
The buyer offering the most money for your house always moves to the front of the pack, of course. But your agent can help you determine if the buyer has the bank to make good on the offer — and if it’s really the strongest offer in terms of securing the cash to close.
Your agent can help you manage these important factors:
Make sure the buyer is pre-approved for a mortgage Most buyers will need a mortgage to buy a house. If that’s the case with the offers you’re considering, check to see if the buyer is pre-approved for a home loan. A pre-approved buyer has had their finances evaluated by a lender who determined they could qualify for a mortgage. An offer from a buyer with a pre-approval letter is stronger than an offer from a buyer without one.
Evaluate the amount of the down payment Consider how much cash the buyer plans to put down on the house. Down payments of 20% or more of the home value tend to be the least risky for lenders to finance, which means it’s less likely your sale will fall through on the account of a loan not working out for the buyer. Larger down payments typically indicate a buyer is more financially prepared and serious about their home purchase.
Make sure an all-cash offer is legit If you get the holy grail of home bids, the all-cash offer, your agent can help you verify if the buyer really has the cash available to complete the deal.
Document whether the buyer has enough cash to cover a low appraisal If you’ve received an offer over the listing price, your agent can ensure the buyer has enough cash to complete the deal if the house doesn’t appraise for the amount they offered.
When you accept an offer over asking, the buyer’s lender will likely require a home appraisal. If the appraised value is less than the offer price, the buyer must cover the difference in cash at closing. Without enough cash, the sale could fall through. Your agent can help confirm if a bidder has sufficient savings to cover this risk.
Pro Tip: Always ask your agent for a Comparative Market Analysis (CMA) to understand current home values before reviewing offers. This helps you evaluate which offer truly offers the best value beyond just price.
Review All the Contingencies
Buyers usually include conditions, or contingencies, in their offers that must be met before they officially buy your home. These may include mortgage approval, passing inspection, or home appraisal requirements. If these aren’t met, the buyer can back out.
Review these contingencies with your agent and ensure you are comfortable with the buyer’s requests. As a seller, contracts with fewer contingencies typically increase the odds of closing.
Consider the Lender
You and your agent should also consider the reputation of the lender that pre-approved the buyer. Local mortgage companies or banks with strong reputations for approving financing are generally safer bets than lenders with little or poor reputations.
If you or your agent are unfamiliar with a lender, it’s wise to do some research.
Seller Testimonial: “Natalie helped me navigate three competing offers and negotiated a contract that included a quick close and waived contingencies. I felt confident and supported throughout!” — Sarah M., Laguna Niguel
Negotiate, Negotiate, Negotiate
Multiple offers put you in a great position to negotiate. While you can take the highest offer, your agent might help you get an even better deal.
After reviewing all offers, you can ask the strongest bidder for a counteroffer. Your agent will advise on terms to request, such as:
Negotiate closing timeline You might want more time to find your next home. You can arrange a rent-back that allows you to stay in the house for a month or two after closing.
Negotiate sale price Some buyers add escalation clauses that automatically outbid others. In a hot market, your agent may hold a bidding war, asking for “best and final offers” by a deadline and accepting the strongest. Your agent will know if this is a good idea and whether backup offers make sense.
Negotiate closing costs Buyers might sweeten the deal by paying closing costs or waiving contingencies like appraisal.
Pro Tip: Review escalation clauses carefully. These clauses can raise bids automatically but may include caps or other terms that impact your final sale price and terms.
Getting multiple offers is thrilling—a real estate adventure you’ll tell forever. Let your agent guide you with experience and local knowledge to get the strongest offer possible.
*Real estate market conditions and offers vary. Please consult a licensed real estate professional for personalized advice.
Natalie Boyle REALTOR®, Founder of Verso Homes (DRE #01329012) Over 15 years helping South OC homeowners discover their perfect community. Learn more about Natalie →
