Compare two home offers by proceeds, terms and timing
Use consistent cash assumptions to compare purchase offers, then evaluate contingencies and timing without inventing a probability of closing.
Compare cash and contract risk separately
Compare purchase offers with the same seller cost categories, then review terms and timing alongside the arithmetic. The highest sale price can leave less cash if it comes with larger credits or other obligations. Conversely, a stronger-looking cash result does not tell you whether an offer will close.
Create one worksheet per offer. Use each offer’s actual price, requested credits, proposed compensation arrangements and closing date. Carry common estimates across both sheets only when they truly remain the same. A later closing may require different payoff and proration figures; a different payment structure may require another professional review.
Keep subjective concerns in a separate comparison column. Financing, inspection, appraisal, sale contingencies, possession and deadlines deserve discussion with your agent or attorney. Do not turn them into invented percentage probabilities or a fake expected-value score.
Hold shared assumptions constant
List the costs that do not change between offers before calculating. If you use the same mortgage payoff in both scenarios for an early comparison, say that the dates are being held equal. If the dates differ materially, request revised figures rather than leaving an unexplained advantage in one scenario.
Read every proposed credit and fee obligation. A $5,000 credit and a separate $3,000 payment are not the same as a single $5,000 deduction. On the other hand, a payment mentioned in several documents might still be one obligation. Ask the transaction professional to reconcile the wording.
Do not assume that earnest money is extra sale price. Ask how the deposit is applied at settlement and what the agreement says about release or remedies. This article does not determine who would be entitled to a deposit after a dispute.
Work through two illustrative offers
| Component | Offer A | Offer B |
|---|---|---|
| Price | $450,000 | $446,000 |
| Entered compensation | $18,000 | $17,840 |
| Buyer credit | $8,000 | $2,000 |
| Other expenses | $5,000 | $5,000 |
| Mortgage payoff | $258,000 | $258,000 |
| Estimated cash | $161,000 | $163,160 |
All figures are illustrative. A produces $450,000 − $18,000 − $8,000 − $5,000 − $258,000 = $161,000. B produces $446,000 − $17,840 − $2,000 − $5,000 − $258,000 = $163,160. B leaves $2,160 more under these inputs despite its lower price.
The table says nothing about which buyer is more likely to close or whether the obligations are acceptable. It also assumes equal payoff and other expenses for clarity. Change those entries when the actual terms require it. Keep an offer labeled provisional until it reflects the complete written proposal.
Make a decision memo
Write a short note for each offer describing three things: cash under the stated assumptions, unresolved questions and deadlines for an answer. Ask your agent to explain how contingencies operate and your attorney to address legal ambiguity. If a lender confirmation is needed, identify who will obtain it.
Record possession and moving needs separately from price. A rent-back or delayed handover can involve insurance, occupancy and contractual questions beyond the net sheet. Do not accept a larger amount solely to discover later that you cannot meet the agreed schedule.
When countering, state exactly which price or credit is changing and ask for a revised complete worksheet. After acceptance, retire the competing scenario from the active budget but retain it with your records. The useful outcome is a clear explanation of the offer you chose, not a mathematical claim that every uncertainty has been resolved.
Review assumptions before sending a counteroffer
Read the comparison aloud as a set of conditions: this price, this credit, this compensation obligation and this date. If one condition has not been confirmed, identify it as an open question. That prevents an attractive provisional number from becoming a remembered promise about the offer.
Before countering, ask your agent or attorney which terms need to change together. A price increase paired with a larger credit may have a different net effect than you expect, and financing approval may be relevant. Save the counteroffer as another scenario rather than overwriting the original proposal. Once the terms are executed, update the active net sheet from the signed version and preserve the earlier comparison for context.
If co-owners disagree about priorities, separate the arithmetic from the preference discussion. One person may value timing while another focuses on price. A clear record makes that tradeoff visible without pretending the calculator can decide whose preference should control.
FAQ
Is a cash offer automatically better?
No. Review the full agreement, verification and conditions with your professionals. The financing label alone is not a complete comparison of obligations or ability to close.
Can I compare only price minus commission?
That omits credits, other charges and debt. Use the complete cash worksheet if your goal is to compare money available after closing.
Should I assign a dollar value to contingencies?
Only use a value you can justify for a real scenario, such as a known extra expense. Do not invent probabilities or present uncertain legal outcomes as priced facts.
What if one offer changes?
Version it separately and recalculate using the revised written terms. Make clear whether an older condition was replaced or a new obligation was added.
Continue your planning
- How to build a seller net sheet you can actually update
- Repair credit or price reduction: compare the seller cash effect
- Plan pre-listing repairs and preparation without assuming a return
Sources and scope
Source pages checked October 29, 2026. This is the site’s factual research date, not a claim of professional review. Examples are illustrative. Local obligations and individualized legal or tax questions require qualified advice.
