In a real estate transaction—whether buying or selling—a seller often holds more negotiating power than one might assume. It’s not just about the price tag.
When reviewing offers on a property, it’s important to understand that price is not the only deciding factor. Almost everything in a home sale is negotiable—from what furniture stays to whether repairs are made before closing. A successful transaction requires looking beyond just numbers.
“When facing offers for a property purchase,” advised Chris Howey, a real estate agent with Kentwood Real Estate in Denver, “it’s crucial to research all aspects of an offer, not just the price.” He emphasized the importance of evaluating terms like the inspection process and financing details, as these can heavily influence the strength of an offer.
Choosing the highest offer can sometimes backfire. Sellers may find themselves covering closing costs or working with a difficult buyer who withdraws their offer or creates complications. If that high offer falls through, the seller might have to settle for a less desirable backup.
Michelle Schwinghammer, an agent with West + Main Homes in Denver, noted that buyer qualifications, motivation, and flexibility are key factors in the selling process. “A skilled agent plays a critical role in helping sellers evaluate offers and choose the one that best aligns with their goals,” she explained.
Sellers should look beyond price and first understand what matters most to them. Be ready for showings and communicate clearly with your real estate agent. Before submitting an offer, experienced agents will often reach out to the seller’s representative to understand expectations and tailor a competitive proposal.
While price is important, discussing strategy with your agent before speaking to potential buyers can help you position yourself for better offers.
How Does Your Agent View the Buyer’s Agent?
The buyer’s agent can have a significant impact on the transaction. A knowledgeable, responsive, and professional agent often makes the entire process smoother.
“How about the agent representing the buyer?” Howey posed. “Are they known for reliability, thoroughness with contracts, and professionalism?” In some cases, buyers win bidding wars not because they offer the most money, but because their agent submits a cleaner, stronger contract.
Choosing an agent who communicates well with colleagues can also make a difference. “Agent-to-agent communication is key in our line of work,” said Brand Wolff from Guide Real Estate in Denver.
Verify the Offer Details
Your agent should always confirm the accuracy of contract terms and ensure the offer is still valid.
Cash buyers should always be prepared to provide proof of funds. This is an important step in determining which offers are most likely to close successfully.
Understanding Buyer Tactics
To make their offer more attractive, some buyers may limit their inspection rights. This means that after the offer is accepted, they agree to handle any necessary repairs themselves without asking the seller to fix issues beforehand.
Buyers can also offer to cover certain costs or repairs up to a certain dollar amount. Wolff explained that buyers might include a clause allowing them to approve repairs under $5,000—or even under $3,000 or $1,000—depending on their comfort level.
Still, many professionals advise against skipping inspections entirely.
Using an Escalation Clause
To improve their chances in a competitive market, some buyers include escalation clauses.
For example, if an initial offer is $600,000, the buyer may agree to outbid competitors up to a maximum of $625,000. However, not all agents support this strategy. Colleen Covell, an agent with milehimodern in Denver, cautioned, “I personally avoid escalation clauses because they reveal too much of the buyer’s position and can weaken their negotiating stance.”
What Happens If the Appraisal Comes in Low?
Most lenders require a property appraisal to ensure the loan amount is appropriate based on the home’s market value.
Covell shared, “During the market surge when home prices were rising 6% each month, appraisers had trouble keeping up with comps.
This is why buyers willing to make up an appraisal gap can offer reassurance to the seller—and improve the strength of their offer.
Buyers Covering Seller Costs
Covell noted that some buyers even offer to pay for costs typically handled by sellers, such as title insurance. This can make their offer more appealing.
The Bottom Line
Sellers generally have more control than they realize during a property sale. The key is clear communication—both with the buyer and your real estate agent. Align your goals and remain involved in the process.
Cash offers aren’t always the best solution. Other terms and conditions may provide greater convenience or a more reliable closing. Even if an offer isn’t the highest on paper, it might be the best overall when considering timing, reliability, and ease of transaction.
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