Receiving multiple offers on your house is an exciting position to be in—it means buyers see value in your property, and the market is working in your favor. However, the highest offer isn’t always the best one. Factors like financing type, contingencies, closing timeline, and buyer reliability can all impact the success of a sale. A cash offer with fewer contingencies might be stronger than a higher-priced offer with financing risks. So, how do you determine which offer to accept? Here are some key factors to consider when making the best decision in East Hanover and Morris County.
Financing the Purchase
When reviewing multiple offers, understanding which offer to accept goes beyond just the purchase price—how a buyer finances the home plays a crucial role. Sellers don’t have access to a buyer’s credit score, but they can assess financial strength based on loan type, pre-approvals, and contingencies. Nothing is more frustrating than reaching the end of a 45-day escrow only to find out the buyer’s loan was denied, forcing the seller to restart the entire process. By that point, the seller may have already made moving plans, secured another property, or taken on new financial commitments.
This is why cash offers carry so much weight. Many sellers are willing to accept a slightly lower price in exchange for a faster, more secure closing. Beyond cash, buyers with solid pre-approval letters have already been vetted through the underwriting process, making them stronger candidates. Pre-qualification letters, on the other hand, only provide a rough estimate of what a buyer might qualify for. Choosing the right offer means balancing price, reliability, and the likelihood of a smooth, on-time closing.
Contingency Terms
Sellers can often be concerned with the inspection process of a home sale. Any older home will have things that might need some work. How buyers respond to inspection reports can kill the deal or create negotiation points costing thousands. When buyers are willing to waive inspections or reduce inspection periods, this becomes a favorable contract term for sellers. It means the buyers know old properties have problems and don’t intend to nickel and dime sellers.
The length of time for contingencies is a big factor in defining favorable terms. As already mentioned, the inspection period is one. Another key contingency is funding. A 60-day escrow with a 40-day funding contingency gives sellers time to move after confirmation that the loan is approved and ready for funding.
The Overall Package
When considering offers, the sellers’ personal situation is also a factor. How fast does the home need to sell? Probate and estate taxes might accelerate the timing need or even define the minimum sales price. A seller with a new job in a new city that needs to relocate might affect the timeline and reasons for accepting an offer that closes faster. Some sellers can’t move until the home is closed and need a buyer willing to do a rent-back with enough time to allow sellers to coordinate moving.
When multiple offers come in, deciding which offer to accept requires more than just looking at the highest price. A great agent will guide sellers through all factors—financing terms, contingencies, closing timelines, and buyer reliability—to determine the best path forward. If an offer is strong but falls short in certain areas, sellers can counter to better align with their needs. Skilled agents also leverage multiple offers to encourage buyers to submit their best and final terms, often leading to improved deals. By strategically using competition among buyers, sellers can maximize their outcome and secure the best possible terms for their sale.
