The highest offer isn't always the best offer when selling a home. Michigan home sellers should compare price, financing, appraisal provisions, inspection terms, contingencies, concessions and closing terms before deciding which offer is actually strongest.

The Number at the Top of the Offer Doesn't Tell the Whole Story

I'm Bartley Patterson, REALTOR® and Managing Broker with RE/MAX Classic in Canton, Michigan. One of the conversations I have with sellers and real estate professionals is how to compare offers when the answer isn't as simple as choosing the highest number.

After more than 30 years in residential real estate, I have learned to look at an offer as a complete package.

All four can matter when determining which offer makes the most sense for a particular seller.

Consider Two Different Offers

Which one should the seller accept?

There isn't enough information yet to answer that question.

That's the point.

Offer A might ultimately be the better offer. Offer B might be better. The seller needs to understand what each offer actually means before deciding.

7 Things Sellers Should Compare When Reviewing Offers

What Does “Best Offer” Really Mean?

This is where the seller's individual goals become important.

One seller may want to maximize net proceeds. Another may prioritize certainty because they are purchasing another home. Another seller may need additional occupancy after closing. Someone else may value a quick closing.

That definition can be different for every seller and every transaction.

What About an Offer With a Home-Sale Contingency?

This is another good example of why I don't like automatic rules in negotiation.

A seller might initially see a home-sale contingency and assume the offer is weak.

But there is a major difference between a buyer whose existing home hasn't even been listed and a buyer whose home is already under contract and progressing toward closing.

Instead of simply asking:

“Does this offer have a contingency?”

I would rather understand:

Sometimes the Better Move Is a Counteroffer

Sellers don't necessarily have to choose between accepting an offer exactly as written or rejecting it completely.

Depending on the circumstances, a seller may decide to counter an offer and propose different terms.

And a counteroffer isn't necessarily just about asking for a higher price. Negotiations may involve concessions, closing dates, occupancy, contingencies, inspection provisions or other contractual terms.

Instead of only asking:

“How do we get the buyer to pay more?”

another useful question is:

Multiple Offers Require Strategy, Not Just a Bidding War

Multiple offers can create negotiating leverage for a seller, but that doesn't mean the process should simply become a contest to see which buyer will write the biggest number.

A good comparison should help the seller understand the differences in price, financing, concessions, contingencies, appraisal exposure, inspection provisions and timing.

Only then can the seller make an informed decision about which offer—or which negotiation strategy—best serves their goals.

The Real Estate Market Changes the Negotiation

Negotiating leverage isn't static.

When inventory is limited and several buyers are competing for the same property, sellers may have considerably more leverage.

When inventory increases and buyers have more choices, sellers may need to approach concessions, contingencies and pricing differently.

That's why I use current market information—including comparable sales, competing listings, days on market and buyer activity—when helping sellers evaluate their negotiating position.

Frequently Asked Questions About Comparing Home Offers

Thinking About Selling a Home in Canton or Metro Detroit?

Good negotiation begins before the first offer arrives. Understanding your priorities, the current market and the terms you're willing to consider can make it much easier to evaluate an offer when the decision has to be made.

If you're considering selling, I can help you understand the market, establish a pricing strategy and prepare for the negotiations that may come with your sale.