For example, the highest offer might be $6,000 above the next offer but might be contingent on an inspection, an appraisal plus they might be putting down only 5%. The 2nd place offer has done a pre-inspection, (is willing to buy the home as-is and is not asking for any repairs), has waived the appraisal contingency and is putting 20% down. If the highest offer is well above the list price, will the home pass an appraisal? Is the potential extra $6,000 worth the added risk of not closing and maybe having to put your home back on the market 3 weeks later? Fewer buyer contingencies reduces the risk that the buyer will not close or that the buyer will be able walk on the sale and take their earnest money with them.
Cash offers can be great since they are not reliant on passing an appraisal and can close a lot faster than a buyer relying on a mortgage. However, just because it’s a cash offer does not make it the best offer. Cash offers can have just as many contingencies as a financed offer plus a cash buyer might be offering a lot less than other offers. Cash it not always king.
So, if you receive multiple offers on your home, don’t obsess solely on the offer price. Make sure to carefully review the whole offer and pick the one that will most likely get you all the way to closing.