Facebook
X
Pinterest
Copy Link
Why the highest price may not mean the most money in your pocket, and what to consider before accepting an offer.
You’ve listed your home, and now you have two or three offers from interested buyers.
That’s great news!
But now you have an important decision to make.
Which offer should you accept?
Most homeowners look at the price first. If one buyer offers $10,000 or $20,000 more than another, it’s easy to think that’s the better offer.
But the highest offer isn’t always the best one.
In my more than 22 years of helping homeowners sell, I’ve seen how the terms of an offer can change the final result.
A higher price may come with extra costs, longer waiting periods, or a greater chance of the sale falling through.
That’s why I encourage sellers to look at the whole offer before making a decision.
Here are the details I would want you to understand.
Will the Highest Offer Put More Money in Your Pocket?
Not always.
When I review an offer, one of the first things I look at is how much money you’ll actually receive.
A buyer may offer your full asking price or even more. But they might also ask you to pay part of their closing costs.
This is called a seller concession.
And that money comes out of what you receive from the sale.
Let’s compare two offers.
| Offer A | Offer B | |
|---|---|---|
| Purchase price | $650,000 | $640,000 |
| Seller concession | $15,000 | $0 |
| Price minus concession | $635,000 | $640,000 |
At first, Offer A looks better because the buyer is offering $10,000 more.
But after the seller concession, Offer B leaves you with $5,000 more.
That’s before your other selling costs.
This is why I prepare a seller’s net sheet. It helps you compare what you may actually receive from each offer.
The price on the contract matters. But what you walk away with matters more.
Can the Buyer Afford to Buy Your Home?
A high offer sounds good. But can the buyer pay for it?
That’s another question I look at closely.
If the buyer needs a mortgage, I’ll review their preapproval letter and financing terms.
A preapproval means a lender has reviewed some of the buyer’s financial information. However, it doesn’t guarantee the loan will be approved.
I also want to know how much money the buyer plans to put down and whether the lender has checked their finances.
If the buyer is paying cash, we’ll want proof that the money is available.
Why does this matter?
Because you don’t want to take your home off the market only to find out weeks later that the buyer can’t complete the purchase.
Sometimes a slightly lower offer from a buyer with stronger finances may be the better choice.
The goal is to find a buyer who can follow through, not just one who offers the most.
Does a Larger Escrow Deposit Make an Offer Stronger?
It can.
An escrow deposit is money the buyer puts down after signing the contract. It shows they’re serious about buying your home.
For example, imagine two buyers offering the same price.
One offers a $5,000 deposit.
The other offers $20,000.
If everything else is equal, the larger deposit may be more appealing.
But there’s something important to remember.
A larger deposit doesn’t mean the buyer can’t cancel.
Depending on the contract, the buyer may still have the right to cancel during certain periods and receive their deposit back.
That’s why I also look at when the money is due and what the contract says about refunds.
A strong deposit is helpful. But it should be considered along with the rest of the offer.
Why Does the Inspection Period Matter?
After you accept an offer, the buyer may have time to inspect your home.
During this period, they can check the property’s condition and decide whether to move forward.
Depending on the contract, they may also have the right to cancel.
Now, let’s say you receive two similar offers.
One buyer wants 15 days for inspections.
The other wants five days.
The shorter period may be better for you. Why?
Because your home spends less time under contract while the buyer makes a decision.
If a buyer cancels after 15 days, you may have lost two weeks when other buyers could have been interested.
However, the buyer still needs enough time to complete the inspections.
I look for a reasonable period that works for both sides while keeping your sale moving.
What Happens if the Home Appraises for Less Than the Offer?
This is another reason a high offer isn’t always the strongest.
Let’s say your home is listed for $700,000.
A buyer offers $725,000. That’s exciting.
But what if the appraisal comes back at $700,000?
An appraisal is the lender’s way of checking the home’s value before approving the loan.
If the value comes in lower than the purchase price, the lender may not approve the loan amount the buyer expected.
At that point, the buyer may ask you to lower the price or offer a credit.
The buyer may also choose to bring more money to closing. In some cases, the sale could fall through.
That’s why I compare offers with recent home sales in your area.
I also look at the buyer’s finances and how they plan to handle a low appraisal.
A high price is appealing. But we also want a sale that has a good chance of closing.
Does the Closing Date Work for You?
The best offer should also fit your plans.
Maybe you’re buying another home. Perhaps you’re moving out of state or waiting for your new place to be ready.
In that case, you may need more time before closing.
But if your house is already empty, you might prefer to close sooner.
Let’s say one buyer offers $5,000 more but needs 60 days to close.
Another buyer offers a little less but can close in 30 days.
A faster closing could save you money on your mortgage, insurance, utilities, and other costs.
However, if you need extra time to move, the longer closing date may work better.
There’s no perfect closing date for everyone.
The right date is the one that works for your finances and your next move.
Can You Negotiate an Offer Before Accepting It?
Yes.
You don’t have to accept every part of an offer exactly as it’s written.
For example, a buyer may offer a great price but ask for a large seller concession.
Instead of rejecting the offer, we may be able to negotiate better terms.
That could mean asking for a smaller concession, a larger escrow deposit, or a closing date that works better for you.
You may also want to discuss the inspection period.
Of course, there’s always a chance the buyer won’t agree.
They may accept your changes, make another offer, or walk away.
That’s why it’s important to know which terms matter most to you before responding.
Sometimes a small change can make an offer much better without changing the purchase price.
Final Thoughts
Receiving multiple offers on your home can be exciting. But choosing the right one isn’t simply about accepting the highest price.
It’s about knowing how much money you’ll receive, whether the buyer can complete the purchase, and which terms work best for your plans.
For homeowners in Miramar, Pembroke Pines, and throughout Broward County, that means looking closely at seller concessions, financing, escrow deposits, inspection periods, appraisals, and closing dates.
You should feel comfortable asking questions, comparing your options, and knowing what you’re agreeing to before signing a contract.
For more than two decades, Sharon Flood of Coldwell Banker Realty has helped homeowners price, market, and sell their properties. Her approach includes reviewing offers, explaining contract terms, and helping sellers make decisions based on their goals.
If selling your home may be in your future, consider talking with a Realtor about how offers will be reviewed and compared. Ask how they plan to help you understand the numbers, spot possible concerns, and negotiate terms that work for you.
The best offer isn’t always the one with the highest price. It’s the one that gives you the strongest overall result and a clear path to closing.
Call Sharon Flood at 954-650-2676 for a no-pressure conversation about your home’s value, your selling goals, and how to prepare for offers when your home goes on the market.
