Multiple Offers on a House: 7 Tests to Select the Best
If you’re selling a house, it’s likely you’re juggling some fragile objectives you can’t afford to drop — from timing the sale to having enough money for your new home. Receiving multiple offers on a house can reduce the risk of delays, fallen deals, and the universal fear of lost proceeds.
With the help of two top-rated real estate agents, we’ve created a 7-factor test to help you decide between multiple offers on your home. Whether you’re looking for the highest price or a quicker, hassle-free closing, this guide will help you weigh your options and choose with more confidence.
Test 1: Highest offer price
The first factor sellers tend to look at is the offer price. Naturally, a higher price seems appealing, but it’s essential to consider whether it’s realistic and supported by the buyer’s financials.
“The highest offer is sometimes not the best offer,” says Bethany White, a top Virginia agent who works with 80% more single-family homes than average agents in her market. “Verify all funds and make sure you’ve checked out the agent. Make sure you feel confident enough that they will be able to bring this into escrow and to closing.”
Some buyers may offer more or submit a high cash offer in hopes of outbidding others, only to request a reduction later in the process.
“I’ve seen it many, many times,” says Thomas Taranto, a HomeLight Elite agent in Florida with more than 20 years of experience. “They beat everybody out because of the high cash offer, and then they (strategically) are a little nitpicky on the home inspection and come back and try to get a pretty massive price drop later.”
Taranto considers this a sneaky tactic but warns that it happens. “When you put all of the offers on the table next to each other, be certain to analyze them merit for merit.”
Test 2: Fewest or no contingencies
Contingencies are conditions that must be met for the sale to proceed. For example, a buyer that submits an offer with a home sale contingency means that their offer will only move forward if they can sell their existing home. Fewer contingencies typically make the deal smoother and quicker.
“Make sure that the contingencies aren’t spaced out over a long period of time, keeping your home off of the market,” White suggests. “Depending on the size of the home and everything involved, you want to try and remove all contingencies within the first two weeks.”
In an active seller’s market, non-contingent offers will almost always beat contingent offers.
“When I work with buyers that say, ‘I’m going make a contingent offer,’ they have to understand that nine out of ten sellers will say ‘No’ right off the bat,” Taranto says. “My goal is to work with them on a number of different strategies. One of them is the HomeLight Buy Before You Sell program that I don’t think a lot of people know about.”
