Myth: The Highest Offer is Always The Best

Why the Highest Offer in Real Estate Isn’t Always the Best

When it comes time to sell a home, it’s easy to assume the highest offer is the one to take. After all, isn’t more money always better?

Not quite.

While price is obviously an important part of any real estate offer, experienced agents and sellers know that the terms and conditions attached to an offer can make or break a deal. Choosing the best offer involves looking at the whole picture—not just the number at the top of the page.

Let’s break down why the highest offer isn't always the strongest one.

1. Financing Terms Can Affect the Strength of the Offer

Not all financed offers are created equal. While a high purchase price might look appealing, the details of a buyer’s financing can have a big impact on the strength of the offer. Factors like the type of loan, percentage of down payment, whether the buyer is asking for closing cost assistance, and overall loan approval strength can all play a role.

For example, a buyer putting 20% down with no need for closing cost help may be seen as more financially stable than a buyer offering more money but needing significant assistance or putting very little down.

In some cases, a slightly lower offer with stronger, cleaner financing terms may be more likely to close smoothly—and that’s worth serious consideration.

2. Contingencies Can Kill Deals

Many buyers include contingencies in their offer—clauses that allow them to back out under certain conditions, such as:

• Inspection contingencies

• Appraisal contingencies

• Sale-of-home contingencies (the buyer must sell their home before buying yours)

The more contingencies there are, the more opportunities the deal has to fall apart. A lower offer with fewer or no contingencies might be far more appealing and secure.

3. Timing Is Everything

A high offer might also come with a longer closing timeline, which could be a dealbreaker if the seller is trying to move quickly—or if they need to line up the sale with the purchase of a new home.

In contrast, a buyer offering a flexible or faster closing date—even at a slightly lower price—may better align with the seller’s goals.

4. Buyer Motivation and Reliability

Not all buyers are created equal. Some are more committed than others.

A highly motivated buyer with a slightly lower offer may be more willing to work through issues (like a minor inspection problem) and move forward, while a higher offer from a flaky buyer could mean weeks of wasted time if they back out or drag their feet.

5. Net Proceeds vs. Offer Price

It’s also important to look at what the seller actually nets from the sale, not just the offer price. For example:

• Is the buyer asking for closing cost assistance?

• Are there repair credits?

• Are there costs or concessions the seller is being asked to cover?

An offer that looks high on paper might end up netting less once you factor in the financial requests buried in the terms.

In Summary: Look at the Whole Picture

While it’s natural to gravitate toward the biggest number, real estate offers are complex, and smart sellers know to weigh all the factors. That’s where a skilled real estate agent makes a huge difference—by helping you evaluate the full scope of every offer and determine which one truly aligns with your needs.

So next time you’re faced with multiple offers, ask yourself: Which offer is the strongest overall? Not just the highest.

Have questions about comparing offers or thinking of listing your home? Reach out today—Luxe Living is here to help you make a confident, informed decision.