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Home Selling Tips, Real Estate Advice, Real Estate Education, Seller StrategyPublished May 18, 2025
Beyond Price: How to Evaluate Multiple Offers on Your Home
Beyond Price: How to Evaluate Multiple Offers on Your Home
In today’s Silicon Valley market, it is common to list on Thursday and have a stack of offers by Monday. That is a great problem to have, but choosing the right buyer takes more than scanning for the biggest number. After guiding hundreds of sellers through multi-offer situations, here is how I help them sort the contenders from the pretenders.
1. Dig Into the Contingencies
Think of contingencies as the buyer’s escape hatches. Fewer hatches mean less risk.
| Contingency | What to Ask | Why It Matters |
|---|---|---|
| Inspection | Are they limiting inspections to health-and-safety items or waiving entirely? | A three-day, “as-is” inspection beats a 17-day deep dive every time. |
| Appraisal | Will they bridge any shortfall in cash? | In a rising-price market, an appraisal-gap addendum can save the deal. |
| Financing | Is the file already fully underwritten? | A fully underwritten loan is almost as solid as cash. |
| Home Sale | Must they sell first? | A house-to-sell rider adds weeks and uncertainty. |
A clean, slightly lower offer often nets more in the end because it actually closes.
2. Verify the Buyer’s Financial Firepower
- Cash vs. Loan: Cash removes the financing contingency and can shorten escrow.
- Down Payment: Twenty percent signals stability; five percent signals tighter margins.
- Lender Reputation: A seasoned local lender can rescue a wobbly file at 9 p.m. on a Friday—an online discount lender may not.
3. Align the Timelines
- Closing Date: Does it sync with your next purchase or job transfer?
- Possession After Close: Need 30 days to find movers? Negotiate a free rent-back.
- Flexibility: A buyer who can shift a week earlier or later if needed is pure gold.
4. Compare Earnest Money
Serious buyers put real skin in the game. In Santa Clara County we typically see three percent of the price. Anything higher signals commitment and helps if the buyer walks away.
Three Winning Playbooks When Offers Pour In
- Accept the Stand-Out Offer: Perfect terms? Sign and celebrate.
- Strategic Counter: Counter the top two or three on specific terms—shorter contingencies, bigger deposits, tighter closing.
- Highest-and-Best Round: Set a 24-hour deadline, notify all parties, and watch the strongest rise.
Pricing Strategy Drives Offer Quality
| Strategy | When We Use It | Typical Result |
|---|---|---|
| Below Market | Hot, low-inventory neighborhoods | Frenzy bidding, multiple offers, record prices |
| Right on the Money | Balanced inventory | Steady traffic, single solid offer |
| Above Market (Stretch) | Unique property with few comps | Could snag premium or require price correction |
Homes that go pending in the first seven days average 103 percent of list price in Santa Clara County. Miss that window and you are often negotiating downward. Sometimes the best way to raise your final price is to lower it first and relight buyer interest.
The Offer Comparison Snapshot
Create a simple side-by-side sheet that highlights:
- Price
- Down payment and loan type
- Earnest money
- Contingencies and durations
- Close and possession dates
- Lender or proof-of-funds details
- Special terms (rent-back, appliances, repairs)
Seeing every lever at once makes the true winner obvious.
Bottom Line
Multiple offers are exciting, but they come with fine print. The right choice is the offer that closes on time with the least drama, puts the most money in your pocket, and lets you move on with confidence.
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