The highest offer isn't always the best offer. A strong offer balances price, buyer qualification, contingencies, and timeline — and understanding each piece helps you avoid a deal that falls apart 30 days in.
Look past the sale price
- How is the buyer financing it? A cash offer or a buyer with a strong pre-approval letter from a reputable lender is generally more reliable than one with a thin or unverified pre-approval.
- Down payment size: a larger down payment often signals a smoother appraisal and underwriting process, since there's more cushion if the appraisal comes in lower than expected.
- Closing timeline: does it match what you need? A buyer needing to close in 15 days is a very different situation than one flexible to 60.
Common contingencies — what they mean for you
- Inspection contingency: lets the buyer back out or renegotiate based on what an inspector finds. Most common source of post-offer renegotiation.
- Appraisal contingency: protects the buyer if the home appraises below the contract price — if it does, the buyer can renegotiate, cover the gap in cash, or in some cases walk away.
- Financing contingency: protects the buyer if their loan falls through. A pre-approved, well-qualified buyer makes this less risky for you as the seller.
- Sale-of-buyer's-home contingency: the buyer's offer depends on selling their own home first. This is the riskiest contingency for a seller since it adds another transaction's worth of uncertainty to yours.
"As-is" offers
An as-is offer typically means the buyer won't ask for repairs after inspection — but it usually does not waive their right to inspect or to walk away based on what they find. Don't assume "as-is" means "no inspection contingency" unless that's explicitly stated in the offer.
Multiple offers
If you receive several offers, your agent can go back to some or all buyers for a "highest and best" round, or you can counter your favorite. Weigh price against financing strength and contingencies together — a $10,000 higher offer with a weak financing contingency and a sale-of-home contingency can be a worse deal than a slightly lower, cleaner one.
Offer structures and standard contract contingencies vary by state. Your listing agent and, where applicable, a real estate attorney can advise on the specific terms in your contract.