The highest offer is not always the best offer. Price matters, but so do the buyer financing, the contingencies, the deposit, and the closing timeline. A strong offer is one that actually closes at the number on the page.
Read the whole offer, not just the price
Look at how the buyer is paying. Cash with proof of funds is the cleanest. A conventional loan with a large down payment and a full underwriting approval is close behind. A small down payment with a preapproval letter that has not been underwritten carries more risk. Then look at which contingencies the buyer kept for inspection, appraisal, and loan, how long each runs, how much they are putting up as a deposit, and whether the closing date fits your move. A slightly lower offer with fewer contingencies and a fast close is often worth more than the top number attached to shaky financing.
Your three responses to an offer
You can accept, counter, or reject. Most negotiations run through counters. Counter on the terms that matter to you, not on everything at once, and know before you respond which points you will hold and which you will trade. The goal is a signed contract with a buyer who can perform, not a win on every line.
What happens once you accept
Signatures make the purchase agreement binding on both parties. The buyer deposits earnest money into escrow, which shows they are serious and is credited to them at closing. The disclosure package goes to the buyer, the contingency clocks start, and the inspection and appraisal periods begin. From here the transaction runs on deadlines, and missed deadlines have consequences written into the contract.
Handling multiple offers
When a well-priced Los Angeles listing draws several offers, the move is not simply to take the highest. We compare each on price, financing strength, deposit size, contingency exposure, and timeline, then usually go back to the top group and ask for their best and final terms. That process regularly improves both the price and the terms.
Frequently asked questions
Should I always accept the highest offer on my home?
No. Evaluate price alongside financing strength, deposit amount, contingencies, and closing timeline. A high offer with a weak loan and long contingency periods can fall apart weeks later, putting you back on market as a stale listing. A slightly lower offer that closes on time is frequently the better deal.
How does contract negotiation work when selling a home?
The buyer submits a written offer. You accept, counter, or reject it. Most sales settle through one or two rounds of counters covering price, credits, contingency timelines, and the closing date. Decide in advance what you will trade and what you will hold, and negotiate the terms rather than only the number.
What happens with the initial agreement and deposit?
Once both parties sign, the purchase agreement is binding. The buyer deposits earnest money into escrow, typically within a few days, which demonstrates commitment and is applied to their funds at closing. From that point the contingency and closing deadlines in the contract govern the transaction.
Get an offer reviewed
If you have an offer in hand and want a straight read on it, call 310-595-0915.
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