How to Choose Between Multiple Offers on Your Home

Getting more than one offer on your home is exciting. It also means you have a decision to make. 

Zillow research shows the typical seller in 2025 got two offers. More than half had at least one offer fall through. That’s one reason the highest price isn't necessarily the strongest offer. The best offer for you might be the one with the most reliable financing, the fewest contingencies, or a closing date that fits your plans. It really depends on your needs. 

Here's how to compare your offers and set yourself up for a smooth sale.

How do you choose the best offer on your home?

Start by laying your offers side by side. Each one is a package of terms, and the price at the top is only one part of it. As you review them with your agent, think about what matters most, whether that's getting the most money, closing on your schedule, or avoiding surprises before closing day. Let’s look at the factors at play:

• Price: The offer amount, and what you'd actually take home after any seller concessions. 
• Financing: Whether the buyer is pre-approved for a mortgage by a lender with a good reputation, or has proof of funds for an all-cash offer.
• Down payment: Larger down payments, especially 20% or more, typically show a buyer is more financially prepared.
• Earnest money: How much the buyer is putting down as a good-faith deposit. A larger deposit can signal a more committed buyer.
• Appraisal coverage: Whether the buyer has enough cash to cover the difference if your home appraises below the offer price.
• Contingencies: How many conditions the buyer attached to the offer, and how long each one lasts.
• Closing timeline: Whether the closing date fits your plans.

Think about what would make your move easier, too. A buyer who's willing to work around your schedule, whether that means a later closing date or a rent-back, may be worth more to you than one who offers a bit more money.

If you haven't listed your home yet, a Zillow partner agent can help you size up every offer, confirm with the buyer’s agent that they’ve been pre-approved, and negotiate terms that fit your plans. Answer a few quick questions to see if you're eligible. There’s no commitment required.

Is the highest offer always the best offer?

Not always. The highest offer only pays off if it closes. Issues with money, mortgage, or financing are the most common reason sellers say a deal fell apart, which is why some sellers prefer to accept a cash offer.

Before you go with the top number, weigh these risks:

• Low appraisal: If your home appraises below the offer price, the buyer's lender won’t finance the full amount of their offer. The buyer either needs to cover the difference in cash, ask you to lower the price, or, if they have an appraisal contingency, walk away.
• Seller concessions: Some buyers offer a slightly higher price in exchange for seller concessions, like help with closing costs. Compare what you'd take home from each offer, not just the price.
• Contingencies: Each contingency gives the buyer a way to back out. A slightly lower offer with fewer contingencies may be the safer bet.
• Starting over: If your top offer falls through, you may lose the other buyers and have to relist. Accepting a backup offer can give you a fallback.

How can you tell if a buyer can close?

A high offer only matters if the buyer can actually pay it. Your agent can help you check each buyer's finances before you accept.

Pre-approval

Most buyers need a mortgage to buy a home. A pre-approved buyer has had their finances evaluated by a lender who is tentatively willing to lend them up to a certain amount, so an offer with a pre-approval letter is stronger than one without.

Keep in mind that a pre-approval letter isn't a guaranteed loan offer, and many expire within 30 to 60 days. Be sure to check the date.

Down payment

Consider how much cash the buyer plans to put down. Down payments of 20% or more tend to be the least risky for lenders to finance, which can make financing problems less likely. A larger down payment typically shows a buyer is more financially prepared and serious about the purchase. 

All-cash offers

An all-cash offer removes the financing step, but you still need to confirm the buyer has the money. Before you accept, ask for proof of funds, like a recent bank statement or, preferably, an official letter from the buyer's financial institution verifying funds and other information. 

Low appraisal 

The buyer's lender will require an appraisal. If your home appraises for less than the offer price, the lender will require the buyer to pay the difference at closing or deny the loan, and the sale could fall through.

Buyers are also encouraged to use a low appraisal to ask for a lower price, so be ready to negotiate. A buyer with an appraisal contingency can also walk away with their earnest money or renegotiate the price. Look for offers where the buyer has enough cash in savings to cover a low appraisal, or has agreed in their purchase agreement to cover some or all of the difference.

Which contingencies should sellers watch for?

Contingencies are conditions that must be met before a buyer officially buys your home. If they aren't met, the buyer can back out of the deal and typically get their earnest money back. In a 2025 Zillow survey, 85% of buyers included at least one contingency in their final offer.

Watch for these:

• Financing: The buyer can walk away if they can't get mortgage financing. The timeline is set in your contract. It's typically 30-45 days from the offer — roughly the amount of time a lender will allow to close a loan before the buyer has to get re-preapproved. 
• Inspection: The buyer can ask for repairs or credits, or walk away, if the home inspection turns up major issues. A shorter inspection window lets you move on faster if the buyer backs out.
• Appraisal: The buyer can renegotiate or walk away if your home appraises below the offer price.
• Home sale: The buyer can back out if they can't sell their current home. This is one of the most common reasons offers fall through. A kick-out clause lets you keep taking offers in the meantime. If you get another offer, the buyer typically has 48 to 72 hours to drop the contingency or lose the deal.
• Homeowners insurance: The buyer's lender will require insurance, and in some areas it's getting harder to find. In a 2025 Zillow survey, 29% of sellers had an offer fall through because the buyer couldn't secure coverage.

As a general rule, offers with fewer contingencies are more likely to close.

How do you negotiate when you have multiple offers?

Having more than one offer gives you leverage. You can accept the one you like best as written, but your agent may be able to negotiate a better price or terms before you sign.

Counter the strongest offer

Once your agent walks you through every offer, you can respond to the one you like best with a counteroffer. You can ask for a higher price or different terms, like a new closing date. Keep in mind that a counteroffer rejects the buyer's original offer, so they can accept your terms, counter back, or walk away. Counteroffers are also time-sensitive, so include a deadline for the buyer's response. If the buyer accepts, your home goes under contract — but the deal isn't final until closing.

Ask for highest and best offers

In a competitive market, your agent may ask every interested buyer to submit their highest and best offer by a deadline. You can then compare them and choose the one that fits your goals. Some buyers may include an escalation clause, which automatically raises their bid by a set amount over competing offers, up to a maximum price. Your agent can tell you whether this approach makes sense in your market.

Closing costs, credits, and timeline

Price isn't the only term to negotiate. Buyers may also ask for seller concessions. In 2025, 67% of sellers paid some or all of the buyer's closing costs, and 33% accepted an offer that included a rate buydown. Some buyers ask for repair credits, too. The buyer's loan may limit how much you can contribute, so your agent can help you structure any credits.

You can also negotiate the closing timeline. If you need time to move into your next home, ask for a rent-back, which lets you stay in the home as a renter after closing. These agreements usually last less than 60 days.

Frequently asked questions