How do I compare different offers?

How do I compare different offers?

Want the highest net and the surest close? Read this — then pick the offer that actually wins.

Why comparing offers in Milton is different

Milton sits at the edge of the Greater Toronto Area. That matters. Buyers come for commuter access (401, 407, GO Transit), new subdivisions, and family-friendly schools. That means offers aren’t just about price. They’re about timing, certainty, and small contract details that cost you thousands.

This guide gives a clear, repeatable process you can use immediately to compare multiple offers and choose the one that maximizes your net while minimizing risk. No fluff. No guesswork.

The three numbers you must always calculate first

1. Net proceeds to you at closing.
2. Probability the offer actually closes.
3. Time and cost to accept, counter, or re-list.

Run these three numbers on every offer. If an offer looks great on price but weak on probability, its expected value drops fast.

Example: an offer $20,000 above list with a weak financing clause might only be worth $5,000 more if there’s a 75% chance the buyer’s mortgage falls through and you re-list at a lower price.

Step-by-step checklist to compare offers

1. Confirm the price and deposit structure

• Purchase price vs. deposit amount and timing. Bigger deposits mean less risk. In Milton’s market, a 5–10% deposit from a qualified buyer is strong.

1. Read the subjects and conditions

• Common subjects: financing, inspection, lawyer review, sale of buyer’s home. Fewer subjects = higher certainty. A firm offer (no subjects) carries huge weight.

1. Check closing date and adjustments

• Does the buyer want possession before closing? Do they demand a late closing? Align closing with your moving plans and tax/possession needs.

1. Evaluate buyer qualification

• Request pre-approval letters and proof of funds. Cash or mortgage-approved buyers reduce risk.

1. Consider escalation and conditional clauses

• Escalation clauses can drive price but add complexity. Confirm cap and whether escalation triggers formal acceptance.

1. Check chattels and inclusions

• Are appliances, window coverings, or upgrades included? Small differences change your net and post-sale work.

1. Legal and title notes

• Watch for title insurance conditions, requests for condo status certificates, or unusual seller obligations.

1. Calculate net proceeds

• Use a simple net sheet: sale price minus realtor commission, legal fees, adjustments, mortgage payout, and closing costs. Compare offers on net dollars, not headline price.

1. Assess timeline and cost of fallback

• If the offer fails, how long to re-list? What costs will you pay during the gap (mortgage, taxes, utilities)?

1. Know local market context

• In Milton, inventory cycles quickly. If inventory is low, the value of a firm, quick-close offer increases. If inventory is rising, a higher-priced but conditional offer may be less secure.

How to score offers (use this simple formula)

Score = Net Proceeds x Probability of Close

• Net Proceeds: calculated net dollars.
• Probability: estimated chance the offer closes (0.0–1.0).

Example: Offer A net $680,000, 0.95 probability = 646,000 expected. Offer B net $700,000, 0.60 probability = 420,000 expected. Offer A wins.

Make a spreadsheet. This method removes emotion and shows which offer is truly best.

Specific Milton market factors to weigh

• Commuter demand: Offers with possession aligning to school start dates or GO schedules can attract more buyers.
• New builds vs resale: New-home buyers often have different financing timelines. Resale buyers may be faster.
• Inventory and seasonality: Spring and early summer bring more buyers. If you have offers in off-season months, treat timing as a higher risk.
• Local buyer profiles: Milton buyers often include young families and commuters. Offers from investors or long-distance buyers may require extra verification.

Tactical negotiation levers that actually move the needle

1. Strengthen deposit terms

• Ask for higher deposits or staged deposits (initial then increased after subjects removed).

1. Shorten conditional periods

• Reduce inspection or financing windows to tighten buyer commitment.

1. Add escalation with cap

• Use escalation clauses only when multiple serious offers exist. Set a cap to protect your minimum net.

1. Ink-in the closing date

• Trade a small price concession for a firm closing date that fits your needs.

1. Keep backup offers

• Accept a firm offer and keep others as backup. That maintains leverage if the primary fails.

1. Consider rent-back or leaseback terms

• If you need time after closing, negotiate generous rent-back at market rates. Buyers who get possession early often pay more.

When to counter versus accept

Accept when: the offer ranks highest on expected value and the buyer’s documentation is clean.

Counter when: small changes (deposit, subject dates, inclusions) increase expected value materially. Always make counters clean and executable — aim to convert uncertainty into certainty.

Do not counter if it risks losing a clean, firm offer just to chase a slightly higher headline price with weak terms.

Real examples (anonymized, realistic)

Example 1 — Multiple offers in low inventory

• List price: $900,000. Two offers: Offer A $930,000 firm with 10% deposit and 30-day close. Offer B $950,000 with financing subject, 5% deposit, 60-day close.
• Net after fees: A = $868k, B = $880k. Probability: A = 0.98, B = 0.65. Expected: A = 849k, B = 572k. Choose A.

Example 2 — Fast sale needed

• Seller must close in 21 days. Offer C $850k with 7-day firm close vs Offer D $880k with 90-day subject. If the seller’s cost of delay is high, the lower firm offer wins.

These examples mirror Milton decisions where timing and certainty beat nominal price.

Paperwork traps that kill deals

• Vague financing clauses without lender names or pre-approvals.
• Inspection subjects that allow buyers to cancel for minor cosmetic issues.
• Missing or late deposit delivery.

Protect yourself by requiring proof, tightening timelines, and working with a realtor who enforces contractual deadlines.

How a local agent increases your net (and avoids mistakes)

A Milton-focused agent knows which clauses are market-standard, what local buyers accept, and how long realistic conditional periods are. That means faster closes, fewer failed deals, and better net proceeds.

If you want an objective evaluation of offers with a clear expected-value calculation, contact Tony Sousa at tony@sousasells.ca or 416-477-2620. He knows Milton buyers, the commuter market, and the negotiation moves that win.

Closing — the decision framework in one page

1. Calculate net proceeds.
2. Estimate probability of close.
3. Compute expected value.
4. Check timing fit with your plans.
5. Choose the offer with the highest expected value and acceptable risk.

Follow this and you stop guessing. You pick the deal that pays and closes.

FAQ — Offers & Negotiation in Milton, Ontario

Q: Should I pick the highest price? A: Not automatically. Compare net proceeds and the probability the offer closes. Higher price with weak terms often loses in expected value.

Q: How important is the deposit in Milton? A: Very. Larger deposits show buyer commitment and lower your risk. Aim for 5–10% where possible.

Q: Are escalation clauses common in Milton? A: They’re used in competitive markets. They can raise price but add complexity. Use them carefully.

Q: What closing dates are typical? A: 30–60 days is common, but motivated local buyers can close faster. Align closing with your moving and financial needs.

Q: What makes an offer ‘firm’? A: No subjects or conditions. A firm offer has the highest probability of closing.

Q: How do I handle multiple offers? A: Ask for a deadline for highest and best. Evaluate using net-proceeds and probability. Don’t chase headline price alone.

Q: Can I accept an offer and keep others as backup? A: Yes. That’s recommended. Keep backup offers active until closing.

Q: How do I verify a buyer’s financing? A: Require a lender pre-approval letter with contact details and proof of down payment funds.

Q: What if a buyer requests a rent-back? A: Negotiate compensation and insurance for the period. Rent-back can be useful if you need time after closing.

Q: Do lawyers impact closing reliability? A: Yes. Experienced local real estate lawyers reduce last-minute title and closing delays.

If you want help running the math on current offers in Milton, contact Tony Sousa at tony@sousasells.ca or call 416-477-2620. He’ll give you a no-nonsense evaluation and a clear recommendation.

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Tony Sousa, Milton Realtor
https://www.sousasells.ca