Hi, I'm an Associate Broker in Massachusetts north of Boston & recently had a listing where the seller accepted an offer $30k below another! In short, it pretty much always comes down to the likelihood of closing. 1. Sellers will want to look at all details when reviewing offers, not just the price. There's of course the standard contingencies: mortgage & inspection where one may opt to waive those at a lower offer price which decreases the chance of an issue arising before closing so a seller may be motivated to take one of those instead at a discount. There could be a Home Sale contingency tied to the highest offer & sometimes you can see that it's a home that's been sitting on the market and is possibly overpriced. b. Having stronger financials can absolutely sway a seller into accepting a lower offer. This can be loan type so FHA versus conventional. Sometimes sellers may know that their house wont pass an FHA appraisal or they'd need to do a lot of work to make it pass. It can also be how much you're putting down especially if there's a chance of an appraisal gap. Then even if financing is similar, it could just be higher earnest money deposits showing more sincerity in the offer. c. I don't work with many co-ops, so I'll skip this one d. It's possible that an offer can be lower but the seller still nets more if there's no buyer agent fee (or a reduced fee) but in most cases, we're talking $15-30k on a $1M home so all other terms will be in play. The counter to this also comes back to the likelihood of closing, sometimes it's preferable to work with a buyer who's represented by another agent as you have another person uniquely incentivized to bring the deal to closing. e. It can also come down to timelines. If the seller of the home is say for instance buying another home, they may need to close by a certain date to keep their new home purchase alive. So if one offer can close within the desired timelines, but is lower, it would still be the better offer to keep their other deal alive. 2. I take this is "The risk of accepting the lower offer"? For each scenario (except the buyer agency fee one), it's pretty similar: The risk is less money, but the reward is the higher probability of an easier path to closing. 3. Yes, I had a seller take an offer $30k below the highest as we had a couple that just loved the home & they were the first to submit their offer waiting over a week for response. 4. Avoid any Fair Housing violations! (@ 2500 Char. max)
A) If there is a home sale contingency and the subject property of the buyers is either not on the market yet or hasn't passed its own contingencies in its sale. Other terms: a slow/fast or closing that doesn't work with the sellers' timeline, a lower net, or requests to amend any existing agreements currently in place with the property. The risk of accepting a higher offer that has a contingency with a home that isn't on the market or hasn't passed its contingencies is that there is less certainty that the home will sell. B) I recently represented sellers of their home on Maui, and we received two offers. One for full asking price of 975k, but it was a 0% down VA financed loan offer. The other was a 940k all-cash. On paper, the all-cash offer is the stronger buyer and the secure play. The sellers chose the higher offer with the VA loan due to the buyer's military service, and also because it was higher. The deal closed smoothly, and everyone was happy! Well, everyone except the lower offer buyer. C) N/A D) This is a higher net scenario where total commissions improve the buyer's position and increase the seller's home pay from the deal. Sellers with an agent seem to prefer when the buyer is also using an agent, as it results in a smoother, organized, and predictable process. 2. Risk/rewards are included with each answer above. 3. I have represented sellers who accepted lower offers. It's not always related to the nuts and bolts of the offers, but a personal preference in that they liked one set of buyers better than the other. The sellers feel better that a first-time home buyer will be calling it home over it being another investment for a larger organization. 4. Home sellers should consider the buyer's ability to perform when accepting a lower offer. 5. With multiple offers, consider various terms of the contract. 6. Home sellers shouldn't jump on the highest offer; they should carefully weigh the pros and cons of all offers and make the best decision for themselves. 7. Don't be afraid to take a lower offer if it means lower stress during the deal, higher confidence in the process, if it means you 'feel' better about the deal, or it aligns better with your goals of transitioning to another property. 8. Evan Harlow Real Estate Agent Coldwell Banker Island Properties Wailea, Maui, Hawaii www.mauieliteproperty.com evan@mauieliteproperty.com My original answer for this is much more in-depth and about 7,000 characters if you would like me to email.
“Quintessential New Yorker®” and a Licensed Real Estate Agent at Brown Harris Stevens
Answered 7 months ago
1. If the highest offer includes multiple contingencies like the buyer wanting to sell their current home, get specific mortgage terms, or conduct exhaustive inspections, you are basically agreeing to a long engagement with no guaranteed wedding. Meanwhile, a slightly lower offer that's clean, quick, & confident might be your golden ticket. 2. I have seen buyers close all-cash deals on a slightly lower number with good financials over a higher one with shaky financing. In reality, you never know if the latter will even survive underwriting. A confident deal is always better than one that you don't even know you will close or not. 3. Co-ops are their own beasts. I often advise sellers to go with the buyer that is most likely to win board approval, even if it means closing on a smaller number. In NYC, a board rejection means you will have to start from the beginning again. One client agreed on a deal with a slightly lower offer from a buyer with amazing references and financials. The sale closed fast, no drama, no resubmissions. 4. Once a seller got two offers, a higher one with a 2.5% buyer's agent fee, & a slightly lower one from a buyer with a flat-fee agent. The net proceeds were almost identical, and the seller went with the latter because it felt like an open-and-shut case. Fewer back-and-forths means more peace of mind. 5. It's not always just about the numbers, sometimes legacy matters too. I have had sellers who prefer offers from those who wrote a thoughtful letter or showed an emotional connection with the property. The biggest risk associated with not choosing the highest offer is, obviously, leaving money on the table. But the reward? You might actually close the deal. Fast, clean, & confident offers reduce stress, delays, & surprises. One seller I worked with accepted a lower offer from a cash buyer after a bidding war. It was a tough call, but the deal closed under 30 days. She also told me that it was the most peaceful transaction she had ever experienced. Never forget to review the buyer's financial qualifications, contingencies, timeline, & motivation. And make sure you know what the net proceeds will be after commissions and concessions. The best offers are not always the ones that are the highest, it's the one that you are sure will close. So take a deep breath, consult your agent, & remember that selling a home is like running a marathon, not a sprint race.
The highest offer price is certainly enticing, but sellers need to consider valuable terms and conditions. I've helped several clients in the past who received attractive iBuyer offers, then had those offers slashed during a brief inspection period for unexpected service charges, repair credits, and appraisal shortfalls. These subtle reductions can result in a lower net then a competing offer with less minus contingencies or easier terms. A comprehensive analysis of all the terms in each offer with your agent is very important to determining the actual value of a potential offer.
From the financing side, I've seen higher offers blow up because buyers couldn't secure the loan terms they expected, leaving sellers hanging. A lower offer from a well-qualified buyer with verified funds is often stronger, especially if timing or certainty is critical to the seller's plans. In these cases, trading a few thousand dollars for reliability outweighs the risk of restarting the selling process months later.
In my 23+ years at Monterey Mortgage and now with California Hard Money Lender, I have seen sellers make expensive errors in the name of pursuing the highest amount. Here is what I found out the hard way When Relativities Slay in Reveries Just last month I saw a Fresno seller accept an offer of $875K with a bunch of contingencies over my client who had a clean offer of $840K in cash. The high-bidder requested inspection, appraisal, financing and sale contingencies. Three weeks in, their lender backed out as appraisal was at 820K. My money customer was finished. After two months more the seller sold at the price of $810K. The reason I always check buyer financials I have also witnessed too many pre-approval letters not worth the paper they were written on. Last year I had a seller take an offer of 950K with 3 percent down over my borrower with 25 percent down at 925K. Which do you guess shut? The employment of the highly leveraged buyer was restructured during the underwriting. Game over. Co-op Board Reality Check My Manhattan clients are aware that boards turn away one in every four applicants. I have witnessed first hand $1.3M bids by cryptocurrency traders wiped out by offers of $1.2M by government employees with consistent W-2s and 6 months in reserves. New Commission Economics Home Since the settlement of NAR, I am computing in a different way. A 2.5 percent buyer commission is taken which reduces the price to 960K to 936K. However, the flat-fee client offer of $940K brings the full price. In some cases less is more Money Saved by Cash Speed Time is money. Period. My hard money customers close in days not months.
Multiple scenarios exist where sellers should reject the highest offer because price alone does not determine the best deal for your situation. At Liberty House Buying Group, I work with sellers who learn that the most money on paper often becomes less money in their pocket after the deal complications get resolved. The contingency heavy offers create the biggest problems because buyers who include inspection contingencies, appraisal contingencies and financing contingencies can renegotiate or walk away at multiple points. I think that the buyer financial strength matters more than their offer amount because the weak buyers often cannot close even if they get approved initially. A buyer with 800 credit score and 20 percent down will close reliably while someone stretching financially at 620 credit might face the last minute loan problems. The co op board approval adds an extra layer of complexity where the lower offers from the stable applicants beat the higher offers from questionable candidates who might get rejected after months of board review process.
While price is important in real estate transactions, the highest offer isn't always the best choice for sellers. In my experience, I've seen transactions succeed because we focused on the seller's complete priorities, such as offering a quick, hassle-free closing to a seller who needed to relocate for work. This approach secured the deal despite not having the highest bid, as the certainty and convenience of the transaction ultimately provided more value to the seller than a slightly higher but potentially more complicated offer. Understanding the full picture of what matters most to each individual seller is crucial to guiding them toward the most beneficial outcome.
I've guided sellers on high-end homes to take a slightly lower flat-fee buyer because it netted them more profit than paying a hefty commission to an agent of the higher bidder. In another case, a co-op board had strict approval standards, and accepting a lower offer from a financially stable buyer ensured the deal closed instead of falling apart during the review.
As a cash home buyer based in California, I've helped many sellers evaluate offers beyond just price. The highest offer often isn't the best deal when you factor in contingencies, closing certainty, and net proceeds. 1. Please explain different possible scenarios, with details, when a home seller shouldn't necessarily accept the highest offer they receive on their home. A high offer with many contingencies—like needing to sell another home or finance approval—can fall through. A lower, cash offer with no contingencies often closes faster and cleaner. In co-ops, a lower offer may come from a buyer more likely to pass the board interview. Flat-fee agent deals can also yield a higher net than an offer with a 2.5% commission. 2. For each of the scenarios above, please detail the risks and rewards to the seller. The risk with the highest offer is it may not close due to financing, appraisal, or board rejection. The reward with the right lower offer is speed, certainty, and sometimes more money after fees are accounted for. 3. Have you personally represented a home seller who chose one of these scenarios and ultimately opted for a lower offer buyer? Yes. A Houston seller took a $20K lower cash offer over a higher financed bid. That lower offer closed within 10 days; the higher offer eventually fell through. It proved that certainty can outweigh price. 4. What should home sellers consider carefully or avoid before choosing a lower offer based on these or other scenarios? Sellers should always verify buyer financing, understand contingencies, and review net proceeds—not just headline price. 5. What are some other things to consider carefully when you have multiple offers? Review earnest money, closing timelines, and buyer qualifications. Strong deposits and financing matter more than just numbers. 6. In general, why should home sellers not always accept the highest offer they get? Because the highest offer could fall apart. A dependable, well-structured offer may be the better long-term decision. 7. Any other thoughts, tips, or ideas? Sellers should ask buyers to strengthen terms when possible. Simpler, cleaner deals tend to yield better outcomes. 8.What is your full name, title, company, city/state location, and email address? Cesar Villasenor, Cash Home Buyer, Click Cash Home Buyers, Salida California, cesar.villasenor@clickcashhomebuyers.com/ info@clickcashhomebuyers.com
For sure! In real estate, it's not just the offer amount that matters but the quality and the conditions attached to it. For example, high ticket offers might look appealing on paper, but they often come with a lot of contingencies like financing approval, the sale of the buyer's current home, or extensive inspections. These strings can stretch out the selling process, or worse, cause the deal to fall apart under certain circumstances. On the other hand, a lower offer from a buyer with pre-approved financing or a larger down payment signifies a smoother and quicker closing, which can be a huge relief. Co-op sales are another unique beast. Often, it's not just about the money - the board's approval can be strict, and a lower offer from a candidate who fits the co-op's profile well is less risky than a higher one from someone who might not make the cut. Also, in scenarios where the seller pays buyer commissions, flipping to a lower offer from a buyer represented by a flat-fee broker can net more money, despite the lower offer price. Other things sellers might consider include the flexibility of buyers on closing dates or less demanding repair requests, which can make lower offers more attractive. From my own experience, a seller chose a lower offer that was not only free from home sale contingencies but also from cash buyers willing to close within two weeks. They saved months of potential mortgage and maintenance costs waiting on more complicated higher offers. This experience hammered home that the safest deal is not always the highest one. Before jumping on any offer, sellers should weigh their options carefully. Things like the buyer's financial reliability and the likelihood of the deal closing without hitches should be top of mind. Remember, selling a house isn't just about getting the highest number; it's about ensuring the deal closes on the best terms for you. So, when you're faced with multiple offers, consider all variables and go beyond just the price before making your decision.
Media Response for Bankrate - From Orange Law Name: Karan Joshi Title: Managing Attorney Company: Orange Law Location: 6100 Corporate Dr, Suite 515, Houston, Texas 77036 Email: contact@orangelaw.us website: orangelaw.us 1. Scenarios When a Home Seller Shouldn't Automatically Accept the Highest Offer: a. Too Many Contingencies: A high offer stacked with contingencies — such as home sale, appraisal, or inspection — is fragile. We've advised sellers to choose slightly lower offers with fewer conditions because they're more likely to close. One seller we represented passed on a top-dollar offer that was contingent on the buyer selling their out-of-state property. Instead, they accepted a lower, cash offer and closed in under 30 days without stress. b. Weaker Financials on a Higher Offer: A lower offer from a buyer with strong financials (e.g., large down payment, pre-approved, or cash) often carries less risk. A high bidder without solid financials could be denied a loan or delay closing. Sellers should look beyond the number and assess the reliability of the buyer. c. Co-Op Board Approval: In co-op scenarios, we've seen sellers accept lower offers from buyers who were far more likely to pass the board interview. A high offer is meaningless if the buyer gets rejected by the co-op board. Financial stability, clean credit, and professional demeanor often carry more weight than offer price in these sales. d. Commission Differences - Flat Fee vs. Full Agent Commission: In one case, a seller client received a higher offer from a buyer using a traditional agent demanding a 2.5% commission. A lower offer came from a buyer working with a flat-fee broker. After factoring in commission costs, the seller netted more with the lower offer and ultimately went that route. e. Other Scenarios - Flexibility or Timing: Sellers sometimes prioritize terms over price — such as leasebacks, flexible closing dates, or buyers willing to waive repairs. In high-end transactions, we've seen sellers accept lower offers because they aligned better with their moving plans or family situations.
When to Say No Thanks to the Highest Offer 1. Why a Top Bid Isn't Always Best: Too many strings: A bigger offer can lose value if it needs the buyer to sell their place first or has tons of repair requests. A lower, all-cash deal might be quicker and safer. Solid Money Wins: A buyer offering more might have shaky financing. A slightly lower offer with a big down payment is a safer bet. co-op Headaches: Co-op boards can reject buyers. A lower offer from a well-qualified buyer is often smarter. Agent Fees Matter: On a big sale, a lower offer using a flat-fee agent might actually earn you more than a higher offer with standard commissions. Flexibility Counts: A lower offer with perks like a rent-back period can be worth it. 2. What's at Stake: Risky High Offers: Risk = deal falls through. Reward = bigger payout if it closes. Safe, Lower Offers: Risk = maybe less money. Reward = deal actually closes. Co-ops: Risk = turning down more money. Reward = avoiding board rejection headaches. Fees: Risk = agent talks. Reward = more money for you. Flexible Terms: Risk = slightly lower price. Reward = easier move! 3. Real Story: I helped a seller pick a cash offer $15K lower than a financed bid. The higher offer needed an appraisal, which was risky. The cash buyer closed fast. The seller valued peace of mind over every last dollar. 4. Think It Through: Focus on what you'll actually get after fees and risks. Ask yourself: If the high offer fails, how does that mess up my plans? 5. More Things to Consider: Why the buyer wants it (job move vs. casual looking). Which offer fits your timeline. Is the lender/agent reliable? 6. The Point: The highest number means nothing if the deal doesn't close. The best offer is the surest, easiest, and most profitable, not just the biggest. 7. Final Word: A good agent should think about risks, not just the price. They help you make smart, not emotional, choices.
The highest offer isn't always your best bet as a seller. I've seen too many deals fall apart when sellers get tunnel vision about price. The biggest red flag is when a high offer comes packed with contingencies. Last month, I saw a seller choose a $480K cash offer over a $520K offer that had financing, inspection, and appraisal contingencies. The higher offer buyer was stretching financially and would have walked at the first sign of trouble. Smart move. Financial strength trumps offer price every time. A buyer offering top dollar but maxing out their budget with shaky credit is a ticking time bomb. Meanwhile, someone offering $15K less with excellent credit, solid reserves, and conservative debt ratios will actually close. In today's market, many buyers are overextending themselves. Co-op situations are tricky. Boards want squeaky-clean financials, typically requiring 750+ credit scores and debt-to-income ratios below 25-30%. I've watched sellers take $50K less because the buyer profile was board-friendly rather than risk a rejection that kills the deal entirely. Here's something most people miss, commission math can make lower offers more profitable. A $485K offer from a buyer using flat-fee representation often nets more than a $500K offer requiring full buyer agent commission. The biggest risk in choosing lower offers is obvious , you are leaving money on the table. But deal certainty often outweighs that risk, especially when sellers have time constraints or can't afford a failed transaction. Before accepting any lower offer, verify the buyer's financials thoroughly and understand exactly what contingencies remain. Calculate your true net proceeds after all costs. Smart sellers evaluate the whole package, not just the number at the top. The goal is maximizing both proceeds and deal certainty. Dominic Kalvelis We Buy NJ Homes Fast www.webuynjhomesfast.com dominic@webuynjhomesfast.com
Question 1. a)An offer that appears financially attractive may carry numerous contingencies—such as home sale contingencies, excessive repair demands, lengthy inspection periods. A lower offer that's cleaner (e.g., cash or fewer contingencies) may ultimately close faster and with less risk of falling through. b. A lower offer from a buyer with stronger financial credentials—such as cash buyers, pre-approved financing, or a larger down payment—may be more secure. c. In co-op sales, board approval is critical. A higher offer is meaningless if the buyer won't pass the board interview due to financial instability or other disqualifying factors. A lower offer from a financially vetted buyer with a strong application package is often the safer choice. d. If the seller is responsible for paying the buyer's agent commission, a lower offer from a buyer using a flat-fee or no-agent model might net the seller more than a higher offer that includes a traditional 2.5%-3% commission. Sellers should evaluate their net proceeds, not just the purchase price. Question 2. Scenario A -High offer with contingencies -Deal collapse, delays, added costs + Potentially higher sale price—if it closes Scenario B - Lower offer with stronger financials - Lower nominal price + Greater certainty of closing, fewer delays Scenario C - Co-op with board risk - Denied board approval, wasted time Scenario D - Lower offer with flat-fee buyer + Higher net proceeds due to lower commissions Question 3 Well, a good collegue of mine has had a client who was selling a co-op apartment in Manhattan. They received two offers: one for $1.2M from a buyer with marginal financials, and one for $1.15M from a buyer with strong income, excellent credit, and a clean board application. Based on a legal advise given by my collegue, they chose the lower offer. The transaction closed smoothly and quickly. The best offer is the one most likely to close, not necessarily the one with the biggest number. Question 4 Sellers should do a lot of work. Like carefully review all contingencies, timelines, and financial documents. Besides that it is also advisable to request buyer pre-approval letters or proof of funds. Last but not least, consider the buyer's temperament and communication style. Question 5 There is a good formula to keep in mind - larger deposits can indicate seriousness.
For me, one of the biggest misconceptions sellers have is assuming the highest dollar amount automatically equals the best offer. That's not always the case, and I've seen deals fall apart when sellers chase the top number without looking deeper. 1. Scenarios where the highest offer isn't always the best: Too many contingencies can create uncertainty, like repair requests, appraisal clauses, or the ability to back out if the buyer's current home hasn't sold. Stronger financials matter: a buyer with 20-30% down and solid pre-approval is often more reliable than someone offering more but with shaky financing. Co-op board approval: in co-op markets, a lower offer may be better if the buyer is more likely to pass board review. Commission structure: sometimes sellers net more with a lower offer if the buyer is represented on a flat-fee basis rather than a higher commission structure. 2. Risks and rewards: Choosing a lower offer may leave money on the table, but it brings certainty, less stress, and reduces the chance of a deal collapsing. The highest offer can feel good initially, but if financing or contingencies fail, the property may sit longer on the market. 3. Personal example: I once represented a seller with a high-dollar offer that looked great on paper but had shaky financing and an appraisal contingency. They chose a slightly lower cash offer with no contingencies, and the sale closed quickly. My client said the peace of mind was worth more than the extra $15,000. 4. Considerations: Sellers should weigh priorities—speed, certainty, or maximizing proceeds and review net numbers after commissions and concessions, not just the sale price. 5. Multiple offers: Beyond price, deposit size, down payment strength, loan type, and flexibility on closing date matter. A motivated, qualified buyer is often the best choice. 6. Why not always accept the highest offer: Real estate is about certainty as much as numbers. The best offer is the one most likely to get you to the closing table. 7. Final tip: Don't just look at the number—look at the whole package. The right buyer closes with terms that align with your needs. 8. Jack Ma Realtor, Founder of Jack Ma Real Estate Group Jack@JackMaRealEstate.com
I've been in real estate for a long time — as an investor, a landlord, and someone who buys houses in as-is condition. One thing I've seen over and over is that the biggest number on paper isn't always the best deal for a seller. When the highest offer can backfire: A lot of times the top-dollar offer comes loaded with contingencies — inspections, appraisals, financing, sometimes even the buyer needing to sell their own place first. I've watched those fall apart weeks later, and the seller is left starting over. I'd much rather see a seller take a slightly lower offer from a buyer who has strong financing or cash in hand. A sure thing beats a maybe. Same with co-ops — even though I don't deal with them directly here in Illinois, the principle's the same: if one buyer is a lock to get approved and another (with a bigger offer) is questionable, it's smarter to go with the one that will actually get to the finish line. People also forget about commissions. If you're paying 2.5% or more to a buyer's agent, sometimes the "lower" offer with a flat fee ends up putting more money in your pocket at closing. From my own experience: I've taken lower cash offers on my properties plenty of times. Did I leave a little money on the table? Maybe. But those deals closed fast, without endless renegotiations, and I knew exactly what I was walking away with. The peace of mind was worth it. What sellers should keep in mind: Don't just look at the headline number. Look at the terms, the timeline, and how strong the buyer really is. The real question is: Which offer is most likely to close and leave me with the least stress? At the end of the day, selling a house isn't just about squeezing out the highest possible dollar. It's about getting the deal done and moving on with your life. Sometimes that means the "lower" offer is actually the smarter one. Don Wede Job Title: Company President Company: Heartland Funding Inc. Company Website: https://www.heartlandbuyshouses.com/ Social Media Profile: https://www.linkedin.com/in/don-wede/ Headshot: https://www.dropbox.com/s/l3ozgfhqty7g6nx/Head%20Shot2.jpg?dl=0
When evaluating multiple offers on a property, the highest price tag doesn't always translate to the best outcome for sellers. In my experience, I once accepted a lower all-cash offer instead of a higher bid that had uncertain financing, which proved to be the right decision as it prevented potential complications later in the transaction process. Financial strength and fewer contingencies often create a smoother closing experience, which can be more valuable than a marginally higher offer price that comes with increased risk. This approach has consistently helped my clients avoid the significant costs and stress associated with deals that fall through due to financing issues.
In selling a house, the best offer is not always the most lucrative offer. Sellers have to give consideration to individual offers. A high bid that is too contingent can complicate the deal and even wreck the sale. A less expensive bid by a financially stable buyer or with fewer requirements, in other instances, may be smoother and faster to close and therefore the best option. Also, sellers are advised to focus on the way the commission is structured. A flat fee buyer can offer a lower price as compared to a higher one offered by a commission based buyer and still be more profitable. One should not only look at the sale price but consider the overall financial and logistics implication of each offer. Ultimately sellers that are more concerned with a smooth and reliable transaction than price will better ensure that they reduce risk and will achieve long-term success in the selling process. This considerate, tactical strategy results in an improved experience.
I've seen sellers tempted by high offers packed with inspection and financing contingencies, but sometimes those deals collapse weeks later. One family I worked with chose a slightly lower cash offer that closed in under 10 days, saving them months of uncertainty and holding costs. In my experience, prioritizing certainty of close often brings more peace of mind than chasing the top number on paper.