How to Evaluate a Real Estate Offer: Why the Highest Price Isn't Always the Best
Contingencies, closing timelines, and financing strength matter just as much as the offer price. Learn how an attorney evaluates real estate contracts.
When multiple offers come in, the natural instinct is to look only at the highest purchase price. However, the highest price often comes with the highest risk. Contingencies, closing timelines, financing strength, inspection terms, and appraisal gap language dictate whether that high price will actually make it to the closing table. An attorney reads contracts differently than an agent. We look for hidden loopholes, aggressive liquidated damages clauses, and contingencies that give the buyer an easy out. Furthermore, we evaluate the buyer agent commission request. An offer of $1,000,000 asking for 3% commission nets you less than an offer of $990,000 asking for a flat fee. We use our Commission Isolation Strategy to decouple the home price from the agent's fee, negotiating the legal terms to ensure the highest price actually translates to the highest net proceeds in your pocket.