Seller Advice on Evaluating Offers


Well, this appears pretty straightforward. If you have more than one offer on your property, of course you should just accept the best price. Right?

Not always. There are a number of factors you will need to consider when weighing multiple offers on your home, including some contingencies that have the potential to sour a great deal at the last minute.



In almost all cases, a buyer’s offer is contingent on their ability to get a mortgage loan from a bank. For this reason, an offer that is backed up by a pre-approval should always be considered a stronger proposition than one that has not, unless the buyer is paying cash.

It’s also a good idea to review the terms of a pre-approval carefully. Sometimes there is a contingency that allows a buyer to back out if they are not able to secure a loan that meets certain conditions regarding points and interest rate. Such contingencies weaken a buyer’s offer because a seller could waste valuable marketing time if the deal falls through.

Type of Loan

The type of loan a buyer plans on using can impact the amount of time it takes to close. Conventional loans often take less time than government-backed loans. Government-backed loans such as FHA and VA loans also have certain requirements for the condition of the property. Some condo complexes are not eligible for FHA or VA financing.For VA loans, there are certain fees that the buyer is not allowed to pay, so the seller must these, adding costs to the seller that a conventional loan would not have.

If you are unsure if your property will qualify for certain financing, be sure to work with a real estate agent and loan officer.


It’s common for lenders to require an appraisal as part of their contingency for financing. In this case, the lender may only fund a certain percentage of the appraised value. If the buyer offers to make up the difference, possibly with a higher down payment, this makes the offer stronger.

HOME Inspections

Another issue to consider is the home inspection contingency. Most buyers will use a contingency to have the home inspected and be able to back out if they find an issue with the property. It’s rare that a buyer will not ask for a home inspection contingency, but offers without an inspection contingency are more attractive.

Earnest Money DEPOSITS


The amount that a buyer puts down as a deposit indicates how serious their intentions are. This is a signal that they are willing to assume some of the risk and expense should the deal fall through. An offer that is backed up by high dollar value in the deposit should be viewed more favorably than one that is not.


It’s a great position to have more than one offer to choose from, but you will need to consider all variables carefully to get the best deal. Not every offer is all it seems. In order to get top dollar for your home, it’s important to avoid the necessity of putting it back on the market if a deal doesn’t work out. Such a delay in selling can lead to a lower sale price. If you are unsure how to evaluate multiple offers, seek the guidance of a real estate professional.