When selling a property, receiving multiple offers can be exciting but also overwhelming. Choosing the best offer isn’t just about the highest price—it’s about considering various factors like buyer reliability, financing method, contingencies, and closing timelines. A structured approach to evaluating offers ensures that you make an informed and profitable decision.
In this guide, we will introduce a simple yet effective Offer Comparison Sheet to help you analyze and compare multiple offers. By using this tool, you can confidently choose the offer that best aligns with your financial and logistical goals.
Why Use an Offer Comparison Sheet?
An Offer Comparison Sheet helps you:
- Organize information: Clearly see how different offers compare at a glance.
- Evaluate key factors: Consider price, financing type, contingencies, and timelines.
- Avoid emotional bias: Make data-driven decisions rather than being swayed by excitement.
- Streamline negotiations: Identify strengths and weaknesses in offers to negotiate effectively.
By using this tool, sellers can make a well-informed choice that maximizes their profit and minimizes potential risks.
Key Factors to Consider When Comparing Offers
Before we dive into the template, it’s important to understand the main criteria that should be included in an offer comparison:
1. Offer Price
The most obvious factor, but not the only one. The highest offer might not always be the best if it comes with too many conditions.
2. Buyer’s Financing Method
- Cash Offer: Strongest type of offer; less risk of loan denial, faster closing.
- Mortgage (Bank Loan): Standard financing; depends on loan approval and appraisal.
- Owner Financing: If you’re open to financing the sale yourself, this could be an option.
3. Deposit (Earnest Money)
A higher earnest money deposit signals a serious buyer. Typically, 5-10% of the purchase price is standard in Nigeria.
4. Contingencies
These are conditions that must be met for the deal to go through:
- Financing Contingency: Buyer’s ability to secure a mortgage.
- Inspection Contingency: Buyer may request repairs or back out if significant issues are found.
- Sale Contingency: Buyer must sell their current home first.
The fewer contingencies, the smoother the transaction.
5. Closing Timeline
How quickly can the buyer close? A shorter closing period (e.g., 30 days) may be preferable if you need to sell fast.
6. Buyer’s Seriousness and Flexibility
Some buyers might be willing to accommodate your preferred move-out date or waive contingencies to make their offer stronger.
7. Additional Terms or Requests
- Is the buyer asking for appliances or furniture to be included?
- Are they requesting major repairs or price reductions?
Template: Offer Comparison Sheet
Use the following table to compare multiple offers. You can customize this based on your specific needs.
| Criteria | Offer 1 | Offer 2 | Offer 3 |
|---|---|---|---|
| Buyer Name | |||
| Offer Price (₦) | |||
| Financing Type | Cash / Mortgage / Owner Financing | Cash / Mortgage / Owner Financing | Cash / Mortgage / Owner Financing |
| Earnest Money (₦) | |||
| Contingencies | |||
| Closing Timeline | |||
| Inspection Requested? | Yes/No | Yes/No | Yes/No |
| Repairs Requested? | Yes/No | Yes/No | Yes/No |
| Other Requests (Appliances, Furniture, etc.) | |||
| Likelihood of Closing (High/Medium/Low) |
How to Use the Offer Comparison Sheet
- Fill Out the Sheet for Each Offer
As offers come in, document all relevant details in the comparison sheet. Be objective and consistent in your evaluations. - Analyze the Strengths and Weaknesses of Each Offer
Consider factors beyond price. A slightly lower cash offer with no contingencies may be better than a higher mortgage offer with strict conditions. - Rank the Offers
Identify the top two offers that align best with your priorities. - Negotiate If Necessary
If two offers are close in value, you can negotiate with buyers for better terms. For example, ask if they can increase their earnest money or shorten the closing time. - Consult With a Real Estate Agent or Legal Advisor
Before making a final decision, get professional advice to avoid legal or financial pitfalls.
Example: Offer Comparison in Action
Let’s look at a scenario where a seller receives three offers on their property:
| Criteria | Offer 1 | Offer 2 | Offer 3 |
|---|---|---|---|
| Buyer Name | Buyer A | Buyer B | Buyer C |
| Offer Price (₦) | 80M | 85M | 78M |
| Financing Type | Cash | Mortgage | Mortgage |
| Earnest Money (₦) | 10M | 5M | 8M |
| Contingencies | None | Financing, Inspection | Inspection |
| Closing Timeline | 30 Days | 60 Days | 45 Days |
| Inspection Requested? | No | Yes | Yes |
| Repairs Requested? | No | Possible | No |
| Other Requests (Appliances, Furniture, etc.) | None | Wants furniture included | None |
| Likelihood of Closing | High | Medium | Medium |
Which Offer is the Best?
- Offer 1 (Buyer A) is a cash offer, has no contingencies, and can close quickly. Although the price is slightly lower, it is the most secure option.
- Offer 2 (Buyer B) has the highest price but comes with contingencies, requires financing, and asks for additional items.
- Offer 3 (Buyer C) is also a mortgage offer but has fewer contingencies than Offer 2.
In this case, Offer 1 is the best because it has the highest certainty of closing.
Final Thoughts
Choosing the right offer is not just about the highest price—it’s about evaluating the entire deal structure. The Offer Comparison Sheet provides a clear and organized way to assess all factors, ensuring that you make a smart, well-informed decision.
By following this method, you can confidently accept an offer that meets your needs, minimizes risks, and ensures a smooth sale.
Would you like a downloadable Offer Comparison Sheet Template? Contact us on WhatsApp at 0916 588 5077 or follow us on Facebook @amanaestates and Instagram @amanaestates to request one today!