🏡 Does the Highest Offer Always Win in Real Estate?
When you're buying or selling a home, it might seem obvious that the highest offer always wins. After all, more money is better, right?
Well… not always.
In real estate, there’s a lot more that goes into choosing the “best” offer than just price. Sellers are looking for the offer that’s most likely to close smoothly, on time, and with minimal complications. In fact, a lower offer with stronger terms often beats a higher one.
Here are five key reasons the highest offer may not come out on top:
🔑 1. Cash Offers Aren’t Always What They Seem
Cash offers tend to be the most attractive because they usually mean no lender delays and fewer obstacles to closing.
But here’s something important to understand:
💡 Not all “cash” offers are truly cash.
A true cash offer means the buyer already has the full purchase price in their bank account and is ready to close without a loan. However, some buyers—especially investors—submit "cash" offers using what's called a hard money loan. These are fast, short-term loans that come with their own risks.
And just to be clear:
👉 Hard money is not the same as actual cash.
We'll talk more about that in another blog!
đź“… 2. Fewer Contingencies = Stronger Offer
A high-priced offer that’s full of contingencies—like inspection negotiations, appraisal conditions, or a home sale requirement—can feel risky to a seller.
Sellers often prefer offers that are clean and straightforward, even if they come in a little lower on price. The fewer hurdles to closing, the better.
🕰️ 3. Timing and Flexibility Matter
A buyer who can close quickly or is willing to work with the seller’s timeline (like offering a rent-back if the seller needs time to move) can gain a major edge over higher offers that come with rigid dates.
Real estate isn’t just about numbers—it’s also about people’s lives and schedules.
🛋️ 4. Watch the Extras
Sometimes a buyer will include extra requests in their offer—like asking for the seller’s refrigerator, furniture, outdoor décor, or even sentimental items the seller intended to keep.
These kinds of requests can rub sellers the wrong way, even if the price looks great on paper. Keeping your offer respectful and focused on the property itself can make a big difference.
📉 5. Appraisal Risk
In a hot market, some buyers shoot high to win—but if they’re getting a loan, the appraisal still has to support that price.
If the home doesn’t appraise, the buyer may try to renegotiate—or worse, walk away. Sellers may choose a slightly lower offer with a better chance of appraising and closing as planned.
đź’¬ Final Thoughts
In today’s market, it’s not just about who offers the most—it’s about who offers the best terms overall. That’s why it’s so important to work with an experienced REALTOR® who understands how to write (and evaluate) strong offers that sellers will take seriously.
If you're thinking about buying or selling, I'd love to help you strategize a winning plan—whether you're going for top dollar or trying to stand out in a competitive market.
Let’s connect!
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Sellers, looking for a unique marketing plan?
I market your home like no one else will. Buyers,
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Agents, I am a referral resource you can trust. Call me, and we can talk. I serve the Victor Valley of CA and the Hill Country area deep in the heart of Texas.
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I'm Karen Sanchez, REALTOR
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"Marketing your house like no one else will." 760-684-0250
Licensed in two states: CA and TX.
Working in the Victor Valley and South Bay area, with some other SoCal areas by request, and the Hill Country of Texas.
Legal stuff to follow.
Karen L. Sanchez Broker, Reputable Realty License #01804752 Email: karen@karensoldit.net
Berkshire Hathaway HomeServices Don Johnson Realtors, New Braunfels, TX Cell: 760-684-0250 Office: 830-624-8272
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- Thanks to AIME for the assist The thoughts are mine, correct grammar and formatting is all AIME.
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