Getting multiple offers on your home is an exciting position to be in—but it can also be overwhelming. When several buyers are competing for your property, how do you decide which offer to accept?
Price Isn't Everything
When sellers see multiple offers, their first instinct is often to look at price alone. While a higher offer can be attractive, it's important to look deeper. Sometimes the best offer is the one with fewer risks, not just more dollars.
Contingencies Matter
Buyers may include contingencies for inspections, financing, or selling their current home. Fewer or shorter contingencies usually mean a smoother path to closing. Understanding the impact of each contingency helps you avoid surprises later.
Common contingencies to evaluate:
- Inspection contingency: How long do they have to complete inspections?
- Financing contingency: Is their loan approval solid?
- Sale contingency: Do they need to sell their current home first?
Financing Strength
Cash offers often rise to the top because they remove financing uncertainty. For financed offers, consider:
- Pre-approval letters (not just pre-qualification)
- Down payment size
- Lender reputation and reliability
A well-qualified buyer with strong financing may be more reliable than a higher offer with shaky funding.
Timing Considerations
It's not just about how much—it's also about when. A quick closing may appeal to some sellers, while others may need a longer timeline to transition to their next home. Consider how each offer's timeline fits your needs.
Escalation Clauses & Bidding Wars
In competitive markets, buyers may include escalation clauses—automatically raising their bid if another higher offer comes in. Understand how these clauses work:
- They specify a maximum price the buyer will pay
- They increase in set increments above competing offers
- They require proof of the competing offer
How to Evaluate Multiple Offers
- Create a comparison chart listing price, contingencies, financing, and timeline
- Consider the "net" offer after factoring in credits or concessions
- Assess buyer motivation through their agent's communication
- Trust your agent's guidance on local market norms
The Bottom Line
Multiple offers put you in a strong position, but choosing wisely requires looking beyond the purchase price. The best offer balances strong terms, reliable financing, and a timeline that works for you.
Need help navigating multiple offers? Find a qualified broker who can guide you through the process.