The short answer
The best offer is the one most likely to close at the highest net price, not always the highest number. Compare price, the buyer’s financing and preapproval, the size of the earnest money deposit, the contingencies and their deadlines, the closing date, and any credits the buyer is asking for. You can accept, reject or counter any offer.
A slightly lower offer with a large deposit and no financing risk is often the better one.
How do I compare offers on my house?
| Term | What to look for |
|---|---|
| Price | What you net after any credits or concessions the buyer requests |
| Financing | Cash or loan type, the size of the down payment, and a full preapproval from a responsive lender |
| Earnest money | A larger deposit signals a more committed buyer |
| Contingencies | Inspection, appraisal, financing and home-sale contingencies, and how long each lasts |
| Closing date | Whether it fits your move, and whether the buyer offers a rent-back |
| Appraisal gap | Whether the buyer will cover some or all of a shortfall if the home appraises low |
A slightly lower offer with a large deposit, strong financing and short contingency periods is often worth more than a higher offer that may fall apart.
How does a counteroffer work?
A counteroffer changes one or more terms – price, closing date, repairs, credits – and sends the offer back to the buyer. The buyer can accept, reject or counter again. Once a counteroffer is made, the original offer is no longer on the table, so counter thoughtfully. Negotiation continues until both sides sign the same terms or someone walks away.
What happens when there are multiple offers?
You have several options: accept the strongest offer outright, counter one buyer, or ask every buyer for their “highest and best” by a set deadline. I will lay out every offer side by side, including your estimated net for each, so you can choose with the full picture. Be aware that rules on disclosing offer terms vary, and every buyer should be treated fairly.
Can I accept a backup offer?
Yes. A backup offer moves into first position if your primary contract falls through, so you can keep going without relisting. Backup offers are especially useful when you have strong interest from more than one buyer.
What happens after I accept an offer?
Once both sides sign, the home is under contract. The buyer deposits earnest money into escrow, typically within a few days, and the timelines for inspection, appraisal and financing begin. Your home’s status changes to pending or contingent, and we move into inspections and appraisals.
Common questions
Should I always accept the highest offer?
Not necessarily. An offer with weaker financing, a small deposit or several long contingencies is more likely to fall apart. Compare how likely each offer is to close and what you will actually net.
How long does a buyer have to respond to a counteroffer?
Whatever deadline the counteroffer sets, often 24 to 48 hours. If it expires without an answer, the counteroffer lapses.
Can a seller back out after accepting an offer?
Generally not without legal and financial consequences, unless the contract gives the seller a way out. Talk to me – and, if needed, a real estate attorney – before taking any step.
What is an escalation clause?
A clause in which the buyer offers to beat any competing offer by a set amount, up to a stated maximum. It usually requires proof of the competing offer.
Negotiate for the strongest result
I review every offer with you line by line, verify buyers’ financing with their lenders, and negotiate for the best total outcome – not just the biggest headline number.