How Do I Compare Two Offers on My House?

Compare what each offer leaves you with and how likely it is to close, not just the price at the top. Look at how the buyer is paying, what happens if the appraisal comes in low, how long the buyer has to back out, the settlement date, when you hand over the keys, and any money the buyer asks you to pay toward their costs.

I am Delia Bayna, a REALTOR with eXp Realty in Salt Lake City, Utah, and a Seniors Real Estate Specialist (SRES). When two offers land in the same week, here is how I lay them side by side with a seller.

The price is the biggest number on an offer. It is not the number you take home. Two offers that look a few thousand dollars apart can end up almost even once you subtract what each buyer is asking for.

Look for seller concessions first. That is money you agree to pay toward the buyer's closing costs. Then look for anything else the buyer wants, like certain repairs, or items left with the house, such as the washer and dryer or the shed in the back yard. Each one changes what the offer is really worth to you.

Ask your agent to work out your net for each offer, the same way I explain in what you will actually walk away with. When both numbers sit on one page, the choice gets much plainer.

An offer only helps you if it closes. How the buyer is paying tells you a lot about how likely that is.

• Cash. No lender and no loan approval to wait for. Before you count on it, ask for proof of funds, like a recent bank statement.
• A loan with a larger down payment. The buyer has more of their own money in the home, and usually more room to handle a surprise.
• A loan with a small down payment. This can be a perfectly good offer. There is just less room for surprises, so the lender and the appraisal matter more.

A loan offer should come with a pre-approval letter. That means a lender has looked at the buyer's income, debts, and credit. It is not a final loan approval. Ask your agent to call the buyer's lender before you decide. A short call tells you whether the lender is ready and how quickly they tend to move.

A cash offer is not always the better one. A strong loan offer with a higher net and clean terms can serve you better. What matters is the whole picture.

When a buyer gets a loan, the lender orders an appraisal. An appraiser gives an opinion of what the home is worth, and the lender bases the loan on that value, not on the price you agreed to.

So if one offer is well above what similar homes near you have sold for, ask what happens if the appraisal comes in lower. Some buyers write into their offer that they will pay some or all of the difference in cash. That is called covering the appraisal gap. Other buyers can cancel if the home does not appraise at the price. Your Utah purchase contract, called the REPC, says whether the buyer's offer depends on the appraisal. Read that part of each offer before you compare prices.

This matters more in Utah than in many states. Utah does not make sale prices public, so you cannot look up what the house down the street sold for. Appraisers here lean on sales recorded in the MLS, the shared database agents use. An offer can look wonderful on paper and still run into the same sales the appraiser will see. Your agent can pull those sales for you, so you can judge how far above them an offer really is.

Every Utah REPC has deadlines with names. These are the ones to line up across offers:

• Due Diligence Deadline. The time the buyer has for inspections and other checks. A shorter window means you learn sooner whether the deal is holding.
• Financing & Appraisal Deadline. The date tied to the buyer's loan and the appraisal.
• Settlement Deadline. The last day to sign and finish the sale. Utah calls closing "settlement."
• Possession. When you hand over the keys. For many sellers, this matters as much as the price.

Look at the earnest money too. That is the deposit the buyer puts down to show they are serious. And check whether either offer depends on the buyer selling their own home first. That ties your sale to a second house you do not control.

Faster is not always better. If you need time to find your next place, a later settlement date or a few extra days to move out may be worth more to you than a slightly higher price. I cover the ways to line up both moves in how to buy and sell at the same time.

Put both offers on one page. Write down the price, your net after concessions, how the buyer is paying, the appraisal terms, each deadline, and the possession date. Then ask yourself which offer you would pick if the prices were the same. Your answer tells you how much the terms matter to you.

You do not have to accept either offer as written. You can counter one, ask both buyers for their best terms, or accept one and keep the other as a backup. Talk with your agent before you counter more than one buyer at a time, because it gets complicated fast if both say yes.

I call and email every client every Friday, from the day we start until after closing. When offers come in midweek, we do not wait for Friday. I taught school for eighteen years, so I walk through each line until it makes sense to you. I will tell you which offer I would choose and why. It is your call, and I will support it either way.

A well-set price is often what brings more than one offer in the first place. Here is how I decide what to list a home for, and the rest of my approach to selling a home in Salt Lake City.

Is the highest offer always the best one?

No. Compare what you would net, how the buyer is paying, the appraisal terms, the deadlines, and the possession date. A lower price with stronger terms can be the better offer.

Is a cash offer better than an offer with a loan?

A cash offer has fewer steps, since there is no loan approval or lender appraisal to wait for. Ask for proof of funds. A strong loan offer with a better net can still be the better choice.

What is an appraisal gap?

It is the difference between the price you agreed on and the appraised value, when the appraisal comes in lower. Some buyers agree in their offer to pay part or all of that gap in cash.

Can I respond to more than one offer?

Yes, but talk with your agent first. Countering more than one buyer at a time can get complicated if more than one says yes.

This article is general information and is not legal advice. For questions about contract terms, talk to a Utah real estate attorney.