Multiple Offers on a House: How to Win One, and How to Pick One

I've been on both sides of this more times than I can count. Writing the offer that has to beat four others, and sitting with a seller who has five contracts on the kitchen table trying to figure out which one will actually close. Here's what I've learned on each side.

If you're the buyer

First, understand what the seller is actually judging. Price, yes. But also: Is your financing solid? How big is your deposit? Can you close on their timeline? How many ways can you back out? A $5,000 higher offer with a thin pre-approval and three contingencies often loses to a cleaner offer at a lower number. Sellers want the deal that closes.

• ✳Get a real pre-approval from a lender who answers the phone. Listing agents call lenders. A lender who picks up and vouches for you is worth money.
• ✳Put up a meaningful deposit. It signals you're serious and you won't walk casually.
• ✳Match the seller's timeline. Ask what they need. A fast close, or a few extra weeks, can be worth more to them than cash.
• ✳Keep the inspection, shorten the window. A 7-day inspection period shows commitment without leaving you exposed to a $20,000 surprise.
• ✳Consider an escalation clause. It raises your offer automatically above competing bids up to a ceiling you set. You compete without guessing.
• ✳Write a short, honest cover note. It doesn't always matter. Sometimes it does.

If you're the seller

Having multiple offers feels great until you realize you have to pick one and the others go away. Here's how I walk sellers through it. Line them up side by side: price, financing type, deposit, closing date, contingencies, and anything the buyer is asking you to pay. Then call each buyer's lender. You'll learn fast which pre-approvals are real. A cash offer or a strong conventional buyer at a slightly lower price is often the better deal than the top number from a buyer whose financing might not hold.

You can also go back to everyone and ask for highest and best. It works, but use it carefully. Push too hard and buyers walk. And remember the appraisal. If a buyer bids way over what the comps support and they're financing, the appraisal will come in low and you'll be renegotiating in three weeks anyway. An offer that includes an appraisal gap guarantee, where the buyer agrees to cover a shortfall in cash, is worth more than one that doesn't.

What not to do on either side

Buyers: don't waive the inspection on an older home to win. I've seen that turn into a very expensive house. And don't bid past your walk-away number because the bidding got exciting. Sellers: don't pick on price alone, and don't take a weak offer just because it came in first. Both sides: don't let the pressure rush you. A multiple-offer situation moves fast, but a day to verify financing is always worth it. If you're in one now, call me. I'll tell you which offer I'd take, or how to write the one that wins.