How do I compare different offers?
Which offer wins? Compare different offers and pick the best deal fast.
Quick answer (featured-snippet ready):
- Calculate net proceeds for each offer (price minus fees and commissions).
- Score certainty: financing, deposit size, pre-approval, and inspection terms.
- Weight timing: closing date, occupancy, and contingency windows.
- Adjust for concessions: seller credits, repairs, and appraisal gap coverage.
- Rank offers by net value + certainty + timing. Accept the highest weighted score.
Why this works
Buyers can have identical dollar amounts but very different risk and cost. You win by measuring every offer on the same scale: money, certainty, and timing. That scale makes negotiations simple and powerful.
Step-by-step action plan
Calculate net proceeds (exact):
Offer price
Minus agent commissions, legal fees, closing costs
Minus expected repair/relist cost if buyer asks for credits
Plus or minus seller credits or concessions
Result = Net to you at closing
Evaluate certainty (scale 1–10):
Is there a mortgage pre-approval or proof of funds? +2 if pre-approved, +3 if cash
How big is the deposit? Larger deposit = higher certainty
Any financing, inspection, or sale-of-home contingencies? Deduct points for contingencies
Shorter financing/inspection windows are better
Check timing and logistics:
Does the closing date match your move-out or reinvestment timeline?
Are there rent-back or occupancy demands? Price those into your net proceeds
Read every clause (don’t guess):
Escalation clauses can boost price but can create appraisal headaches
Subject-to-financing language can kill deals later — prefer firm language
Inspection/repair limits protect you; demand clarity on who pays and when
Negotiation moves that get more money and certainty
- Convert uncertainty into cash: ask for a higher price in return for waiving a contingency or shortening a timeline.
- Trade flexibility: if buyer wants a late closing or rent-back, charge a daily occupancy fee or reduce the net price.
- Use competing offers as leverage: require highest and best offers with proof of funds.
Simple scoring example (use a spreadsheet):
- Offer A: Price = $800k, net after costs = $760k, certainty score = 8, timing score = 7. Weighted score = 760k + (82k) + (71k) = $783k equivalent.
- Offer B: Price = $810k, net after costs = $770k, certainty score = 5, timing score = 4. Weighted score = 770k + (52k) + (41k) = $784k equivalent.
Use weighted scores to pick the best real-world outcome, not just the highest headline number.
Final word
Comparing offers is math + judgement. Make money the baseline, then add certainty and timing as cash equivalents. If you want a clear, documented comparison or to run a competitive bidding strategy, contact me and I’ll build the exact spreadsheet and negotiation plan for your property.
Tony Sousa — Local Realtor Email: tony@sousasells.ca | Phone: 416-477-2620 | https://www.sousasells.ca
