Choosing an offer is a little like choosing the fastest route on GPS. The route showing the shortest time is not necessarily the best one if it has road closures, tolls, or a higher chance of delay. An offer works the same way. The biggest number may catch your attention first, but the terms behind it can matter just as much.
I saw this firsthand with an East Brunswick single-family home I listed in 2022.
We received 18 offers.
The highest offer came from a buyer putting 5% down. The second-highest offer came from a buyer putting 25% down and willing to cover up to a $20,000 appraisal shortfall.
I advised my sellers to look carefully at the second offer because the stronger down payment and appraisal protection reduced some of the risk. They chose the highest offer instead.
The home did not appraise at the contract price.
That transaction ultimately fell apart, and we had to release the buyer.
Fortunately, the second-highest buyer was still interested. We went back to them, moved forward, and successfully closed the sale.
But we lost roughly 30 days in the process.
That is why, when I review offers with a seller, I do not simply point to the highest price.
I look at how the buyer is financing the purchase, how much they are putting down, what happens if the appraisal comes in low, what inspection rights they are retaining, what contingencies are included, and whether the closing timeline works for the seller.
None of those factors automatically make one buyer good or another buyer bad. A buyer putting 5% down can still be very strong. A buyer putting 25% down can still have other terms that create risk. The point is that the entire offer has to be evaluated together.
Appraisal terms are especially important when an offer is aggressive. If the home does not appraise at the agreed price, will the buyer cover part of the difference? Can they renegotiate? Can they walk away?
Inspection terms can matter just as much. One buyer may limit what they will ask for after the inspection, while another may retain broader rights to request repairs or credits.
And sometimes the deciding factor has nothing to do with either one.
A seller may need a particular closing date because they are buying another home, relocating, or coordinating a move. An offer that gives the seller flexibility can have real value even if another offer is slightly higher.
So when I receive multiple offers on a listing in East Brunswick, North Brunswick, South Brunswick, Monroe, or the surrounding areas, my job is to help my seller understand what is behind each number.
Sometimes the highest offer is absolutely the best offer.
Sometimes it is not.
My 2022 East Brunswick sale is a good example. We still closed successfully, but we lost about a month because the offer with the highest price did not have the strongest overall structure.
The question is not simply, “Which buyer offered the most?”
The better question is, “Which offer gives you the strongest combination of price, terms, and likelihood of closing?”
That is the decision I help my sellers make.
Thinking about selling your home?
If you're selling in East Brunswick, North Brunswick, South Brunswick, Monroe or Plainsboro, you'll work with me directly, from the first pricing conversation to the closing table. Book a 60-minute strategy call or call me at 732-395-3944.
Broker/Associate with RE/MAX SELECT, licensed in New Jersey since 2009. You get me — not a team member. Speaks English, Hindi and Telugu. Call or text 732-395-3944.
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