Why the Highest Cash Offer on Your Home Isn’t Always the Best Option

When a high cash offer comes in, most sellers assume it’s the obvious choice. It feels like the safest route because there are no banks, no appraisals, and fewer delays. But there are situations where the highest cash offer isn’t the best move. I want to walk you through a scenario where we encountered the same thing.

I was working with a seller who had multiple offers, including one high cash offer. At first glance, it looked like the clear winner. However, upon reviewing the contract, we identified several red flags. The agent had filled it out incorrectly, missed key terms, and it was clear they weren’t experienced. That raised questions about the validity and solidity of the deal.

At the same time, we had a slightly lower offer that included financing. Usually, you’d see that and assume it’s less reliable. But in this case, the buyer was highly motivated. Their agent was responsive and knowledgeable about their work. They also had a strong, reputable lender backing the deal. So we came up with a strategy.

We countered the financed buyer and asked them to match the cash offer price. They agreed. That gave us two advantages. First, we still got the high price we wanted. Second, if anything fell through with the financed buyer, we could go back to the cash offer and likely still close at the same price.

But here’s what stood out. When it came time for the repair request, the financed buyer hardly asked for anything. It was minimal. They were respectful and grateful for the opportunity. We closed the sale with almost no change to the offer price.

When evaluating multiple offers, just remember that a strong offer isn’t just about price or whether it’s cash. You need to look at the whole picture: the quality of the agent, the strength of the lender, and the motivation of the buyer. There are two significant negotiation moments in every sale: the initial offer and the repair request. A buyer who’s committed from the start can save you time, stress, and money later on.

If you’re reviewing offers and want to make sure you’re not just picking the highest one. Instead, it should be the right one where both you and the seller will be happy. If you have any questions, feel free to call or text me at 626-408-2890 or email me at daveknight@kw.com. I’d be happy to walk you through the pros and cons and help you make the best decision for your real estate journey.