How Do I Choose the Best Offer?
When an offer comes in on your home, it's exciting—but the highest price isn't always automatically the best offer. Price matters, but so do the financing, contingencies, requested concessions, closing timeline, and other terms that come with it.
After preparing your home, putting it on the market, and waiting for buyers to respond, receiving an offer can feel like a major milestone.
And it is.
But before deciding whether to accept, reject, or counter an offer, it's important to understand exactly what the buyer is proposing.
An offer is much more than a purchase price.
When you list with Team Martin, we'll go through the offer with you, explain the terms, answer your questions, and help you understand how the different pieces could affect your sale.
The decision is ultimately yours.
Our job is to make sure you have the information you need to make it confidently.
Quick Takeaways
The highest-priced offer isn't necessarily the strongest overall offer.
Look at the entire offer, not just the purchase price.
Financing can affect the terms and requirements of the transaction.
Seller concessions affect how much of the purchase price you ultimately receive.
Contingencies and other contract terms matter.
The proposed closing date may be important depending on your plans.
Earnest money is another part of the offer to review.
Every offer should be considered individually.
Team Martin will review the offer with you and explain what the terms mean before you make your decision.
Start With the Purchase Price
Naturally, one of the first things you'll look at is the price.
How does it compare with your asking price?
But don't stop there.
Two buyers could offer exactly the same purchase price while presenting very different offers once all of the other terms are considered.
Likewise, an offer with a slightly higher purchase price could include additional requests that affect the seller's proceeds or introduce other considerations.
That's why we want to look at the whole offer.
How Is the Buyer Financing the Purchase?
An offer should tell us how the buyer intends to purchase the property.
For example, the buyer may be using:
Conventional financing
FHA financing
VA financing
USDA financing, when applicable
Cash
Another financing arrangement
Different types of financing can have different property, appraisal, documentation, and transaction requirements.
That doesn't mean one financing type is automatically “good” or “bad.”
It means we need to understand the terms of this particular offer and how they apply to your particular property and transaction.
If the buyer is financing the purchase, we'll also look at the financing information provided with the offer, such as a lender preapproval or other documentation when available.
Is the Buyer Asking You to Pay Anything?
The purchase price isn't necessarily the amount you'll receive before your own selling expenses are deducted.
A buyer may request that the seller contribute toward certain allowable costs associated with the purchase.
These are commonly referred to as seller concessions.
For example, imagine:
Offer A: $400,000 with no requested seller concession
Offer B: $405,000 with a $10,000 seller concession
At first glance, Offer B has the higher purchase price.
But the requested concession changes the financial picture.
That doesn't automatically make Offer A better either.
There may be other terms in Offer B that are important to you.
The point is that we need to look beyond the number at the top of the offer.
What Contingencies Are Included?
Offers may contain contingencies or conditions that must be satisfied as the transaction moves toward closing.
Depending on the contract and transaction, these might involve things such as:
Financing
Appraisal
Inspections
The buyer selling another property
Title or other property-related matters
Other negotiated terms
We'll review what's included in the offer and explain how those provisions could affect the transaction.
Some contingencies are very common.
Others may deserve additional discussion before you decide how you'd like to respond.
What Is the Buyer Offering for Earnest Money?
Earnest money is money a buyer provides according to the terms of the contract as part of demonstrating their intent to move forward with the purchase.
The amount, timing, who holds it, and circumstances under which it may be returned or applied are governed by the contract.
When reviewing an offer, we'll point out the earnest-money terms so you understand what the buyer is proposing.
When Does the Buyer Want to Close?
Don't overlook the proposed closing date.
Timing can be an important part of an offer.
Perhaps you're purchasing another home and trying to coordinate the two transactions.
Maybe you're relocating.
Maybe you need additional time before moving.
Or perhaps you're ready to close as soon as reasonably possible.
We'll compare the buyer's proposed timeline with what works for you.
Sometimes a term that has little importance to one seller can be extremely valuable to another.
Is the Buyer Asking for Anything Else?
Read the entire offer.
Buyers may request items or terms beyond price and closing costs.
Depending on the transaction, that could involve things such as:
Personal property
Appliances
Specific closing arrangements
Additional inspections or evaluations
Repairs or other property-related terms
Possession timing
Other negotiated provisions
This is another reason we don't evaluate an offer based only on its first page.
The details matter.
What If I Receive More Than One Offer?
If multiple offers are received, we'll organize the terms so you can compare them more easily.
Price will be part of that comparison, but we'll also look at the other important provisions of each offer.
You may decide to accept one.
You may decide to counter.
Depending on the circumstances and your instructions, there may be other ways to respond as well.
We'll discuss the options available to you and help you understand the potential considerations of each.
Can You Tell Me Which Offer to Accept?
We'll absolutely give you guidance.
What we won't do is make the decision for you.
We'll explain the offers, identify differences, discuss potential advantages and concerns, and help you understand how each one fits with your priorities.
For example, one seller may care most about maximizing their proceeds.
Another may place significant importance on the closing date.
Another may be balancing the sale of this home with the purchase of another.
There isn't necessarily one universally “best” offer.
There is the offer whose overall terms work best for your particular situation.
Don't Make the Decision Based on Who the Buyer Is
When reviewing offers, the focus should remain on the financial and contractual terms of the offer—not personal characteristics of the buyer.
We evaluate things such as price, financing, concessions, contingencies, earnest money, closing date, and other contract terms.
That keeps the decision focused where it belongs: on the transaction.
What Happens After I Choose?
Once you've decided how you'd like to respond, we'll prepare or coordinate the appropriate paperwork and communicate your response through the proper channels.
Depending on your decision, that may mean:
Accepting the offer
Rejecting the offer
Making a counteroffer
If you make a counteroffer, the buyer will then decide whether to accept it, reject it, or continue negotiations as permitted.
Nothing is final simply because an offer was received.
The terms must be agreed upon and properly executed by the parties.
The Bottom Line
If you only remember one thing from this article, let it be this:
Don't choose an offer based on the purchase price alone.
The strongest offer for you is the one whose complete financial and contractual terms best fit your goals and circumstances.
When an offer comes in, we'll slow it down, go through it with you, and make sure you understand what you're being asked to agree to before you make your decision.
From Dana & John
Getting that first offer notification is exciting. But this is also one of those moments when we want our sellers to look past the excitement for a minute and really understand what's on the table.
When an offer comes in, we'll go through it with you piece by piece and make sure you understand exactly what's being offered. We'll talk about the price, financing, requested concessions, contingencies, timing, and anything else that could matter to your sale.
We'll give you our guidance and answer your questions, but we'll never pressure you into choosing an offer. It's your home and your decision. We want you to feel comfortable with what you're agreeing to.
Continued Learning
Want to understand more about offers and negotiations?
→ What Should I Know About Multiple Offers?
→ What Seller Concessions Should I Expect?
Have Questions?
If you're preparing to sell your home and have questions about what happens when an offer comes in, we'd be happy to explain the process and how we'll help you evaluate the terms when that time comes.
Dana & John Martin – Team Martin
Waters Edge Realty
318-504-9925 | 504-450-2714
ALGulfCoastAgents@gmail.com
