Handling Multiple Offers: How to Choose the Best One
Your phone buzzes at 8 PM on a Tuesday. Then again at 8:15. By 9 PM, you've got five offers on the house you listed just three days ago.
Welcome to one of the best problems you can have as a seller - but also one of the most stressful decisions you'll make.
I've helped Forest Grove sellers work through this situation dozens of times over the past eight years. Last month alone, I had three listings that got multiple offers within the first weekend. It's exciting, but it can also feel overwhelming when you're staring at a stack of contracts and trying to figure out which buyer to choose.
Why Multiple Offers Feel So Complicated
Here's what usually happens: You price your home hoping for one good offer. Instead, you get three, four, or even six offers, and they're all different.
One buyer offers $20,000 over asking price but wants you to pay all their closing costs. Another offers exactly your asking price but can close in two weeks with cash. A third offers $15,000 over asking but needs 45 days to close and wants a home inspection.
Suddenly, you're not just picking the highest number. You're trying to figure out which offer actually puts the most money in your pocket and causes you the least stress.
Most sellers make the mistake of focusing only on the purchase price. But I've seen "highest" offers fall through while "lower" offers close smoothly and actually net the seller more money.
The Real Cost of Each Offer (Beyond the Price Tag)
Let me walk you through what I actually look at when we're comparing offers. These are the factors that determine how much you'll really get and how likely the sale is to close.
Net Proceeds Matter More Than Purchase Price
A $500,000 offer where you pay $8,000 in closing costs nets you less than a $485,000 offer with no seller concessions. I always run the numbers for my sellers so they can see the actual amount they'll walk away with.
Financing Strength Tells You About Risk
Cash offers close 95% of the time in my experience. Conventional loans with 20% down close about 85% of the time. FHA loans with minimal down payment? Maybe 70-75%.
I'm not against FHA buyers - I help plenty of them. But if you're comparing similar offers, the one with stronger financing is more likely to actually happen.
Timeline Flexibility Can Be Worth Thousands
Sometimes a buyer who can work with your timeline is worth more than extra money. If you need to stay in the house for two months while you find your next home, a buyer who's flexible about possession might be better than one offering $10,000 more but demanding immediate occupancy.
My Five-Point System for Evaluating Offers
1. Calculate Net Proceeds First
I create a simple chart for each offer showing the actual money you'll receive after all costs. Purchase price minus your closing cost contributions minus any repair credits equals your net proceeds.
On a recent Forest Grove listing, the "highest" offer at $475,000 actually netted my seller $8,000 less than the second-highest offer at $465,000 because of all the seller concessions requested.
2. Assess Buyer Qualification Strength
I look at pre-approval letters closely. Is it from a reputable local lender? Does the buyer have enough down payment? Have they been pre-approved for the amount they're offering, or are they stretching?
A pre-approval from a lender I know and trust carries more weight than one from an online lender I've never heard of.
3. Review Inspection and Repair Requests
Some buyers ask for the right to inspect but agree to accept the property "as-is" after inspection. Others want full inspection rights with repair negotiations.
The "as-is" buyer is usually less risky, even if their offer is slightly lower. I've seen repair negotiations add weeks to a closing and sometimes kill deals entirely.
4. Consider Closing Timeline
A 30-day closing is standard, but sometimes faster or slower works better for your situation. If you're buying another house and need to coordinate closings, timing might matter more than a few thousand dollars in price.
5. Look for Red Flags
Unusual contract terms, unrealistic timelines, or buyers who haven't seen the house in person yet are all warning signs. If something feels off about an offer, trust that instinct.
When the Highest Offer Isn't the Best Choice
Last spring, I had a seller in Forest Grove receive four offers on a charming 1950s ranch. The highest offer was $15,000 above asking price, but the buyers wanted a 60-day closing, $5,000 in seller concessions, and the right to negotiate repairs after inspection.
We went with the third-highest offer instead. Those buyers offered $8,000 over asking, no seller concessions, as-is after inspection, and could close in 25 days.
Guess which deal actually closed? The lower offer closed smoothly right on schedule. The highest offer? Those buyers walked away after inspection, claiming they found foundation issues that three previous inspections had never mentioned.
The Art of the Counter Offer
You don't always have to just pick one offer and reject the rest. Sometimes you can improve your favorite offer by countering with better terms.
I might counter the strongest offer by asking them to match the highest price from another offer, or ask the highest offer to improve their financing terms to match another buyer's qualifications.
About half the time, buyers will negotiate. Just remember that once you counter an offer, that buyer can walk away entirely.
Special Situations in Today's Forest Grove Market
Dealing with Escalation Clauses
These are becoming more common. A buyer offers $450,000 but says they'll beat any other offer by $5,000, up to $480,000. These can work, but make sure the escalation clause is written clearly and the buyer can actually qualify for the higher amount.
Cash Offers with Financing Contingencies
Some "cash" offers aren't really cash - they're using hard money lenders or other creative financing. True cash means the buyer has the money sitting in their bank account and you've seen proof of funds.
Backup Offers
If you get multiple strong offers, consider accepting one and keeping another as a backup. If the primary deal falls through, you already have another buyer ready to go instead of starting over with showings.
Your Next Steps When Offers Start Coming In
Don't Rush the Decision
Take time to review each offer carefully. You usually have 24-48 hours to respond, and most good buyers understand you need time to consider multiple offers.
Get Help Running the Numbers
If you're working with an agent, make sure they show you net proceeds for each offer. If you're selling yourself, use a closing cost calculator to see what each offer really means for your bottom line.
Trust Your Gut on Buyer Quality
Price isn't everything. A buyer who communicates well, has strong financing, and seems genuinely excited about your house is often a better choice than someone offering more money but giving you bad feelings about the transaction.
Making the Right Choice for Your Situation
Multiple offers are a good problem to have, but the decision still matters. I've seen sellers choose poorly and end up back on the market six weeks later, or choose well and close smoothly with more money than they expected.
The key is looking beyond just the purchase price to understand what each offer really means for you. Sometimes the highest offer is the best choice. Sometimes it's not.
If you're thinking about selling in Forest Grove or anywhere in Washington County, I'm happy to talk through what multiple offer situations look like in today's market and how to position your home to attract strong buyers.
You can reach me at (541) 592-4682 or misscilicia@outlook.com. No pressure to list - just straight talk about what you can expect when you're ready to sell.
