If you're selling your home and receive multiple offers, it's tempting to choose the buyer offering the most money.
But the highest offer isn't always the best offer.
A buyer might offer $15,000 above everyone else, only to ask you to lower the price when the appraisal comes back. Another buyer might offer less but have stronger financing, fewer contingencies, and a closing date that works better for you.
When I help my sellers review offers, I want them to understand three things:
- How much money they'll receive after expenses.
- What could prevent the transaction from closing.
- Which terms work best for their circumstances.
Let's look at how to compare offers on a house in Utah, including some details in our Real Estate Purchase Contract (REPC) that can make a significant difference.
Why the Highest Offer Isn't Always the Best Offer
Imagine you're selling your home and receive two offers:
| Offer A | Offer B | |
|---|---|---|
| Purchase price | $550,000 | $535,000 |
| Appraisal contingency | Yes | Waived |
| Appraised value | $525,000 | $525,000 |
At first glance, Offer A looks better because it's $15,000 higher. But the home appraises for $525,000.
If Offer A has an applicable appraisal condition, the buyer may have the contractual right to cancel within the required deadline or try to negotiate a lower price.
Now let's look at Offer B. The buyer offered $535,000 without an appraisal contingency. That means the buyer may have less contractual protection specifically tied to the appraisal.
However, waiving the appraisal contingency doesn't guarantee the buyer can close. If they're financing the purchase, their lender may calculate the loan using the lower appraised value. The buyer could need additional cash, and a separate financing condition might still apply.
This is why I'd want to know more about Offer B's financial qualifications before recommending it. Can the buyer cover the $10,000 difference between the purchase price and appraised value if necessary? Are they putting a substantial amount down? Have they also waived their financing condition? The answers matter more than the purchase price alone.
1. Compare the Purchase Price to Your Estimated Net Proceeds
The first thing I look at is how much money you'll receive after the negotiated expenses.
A buyer offering $550,000 with $15,000 in closing cost assistance may leave you with less than a buyer offering $540,000 without concessions.
| Offer A | Offer B | |
|---|---|---|
| Purchase price | $550,000 | $540,000 |
| Seller concessions | $15,000 | $0 |
| Price less concessions | $535,000 | $540,000 |
Offer B leaves you $5,000 more before other expenses, despite having the lower purchase price.
There may also be home warranties, HOA fees, brokerage compensation, repair obligations, and other costs to consider. That's why I prepare a seller net sheet for my clients. I want them to see the estimated money they'll walk away with, not just the number written at the top of an offer.
For a more detailed breakdown, read my guide to the cost of selling a house in Utah.
2. Cash Offers vs. Financed Offers
A cash offer can mean a quicker closing and fewer chances of something going wrong with financing, since there's no loan to approve, often no lender appraisal requirement, and fewer financing related delays. That's real value, and it's why cash offers get attention.
But cash offers aren't automatically better, and the word "cash" by itself doesn't tell you much. The dates on the contract are what tell us how strong the offer really is. A cash buyer who writes in a long due diligence period and a settlement date a month out isn't actually giving you the speed and certainty that cash is supposed to bring. A cash buyer who offers a short due diligence window and a quick close is a very different, and usually stronger, offer. Look at the deadlines, not just the financing type.
A cash buyer could also still have inspection contingencies, a home sale condition, title concerns, or other contractual protections. And I want to verify that the buyer has the funds available to complete the purchase.
A financed buyer with a strong preapproval, substantial down payment, and reasonable deadlines may present an excellent offer too.
What does a preapproval letter tell us?
A preapproval letter indicates that a lender has reviewed some of the buyer's financial information. But not every preapproval involves the same level of review.
I want to understand whether the lender has verified income, assets, and credit, and whether any major underwriting conditions remain. With appropriate authorization, I may also communicate with the lender to better understand the buyer's readiness. A preapproval is encouraging, but it's not a guarantee that the loan will close.
3. Appraisal Contingencies and Appraisal Gaps
An appraisal is the lender's assessment of the property's value. If the appraisal comes in below the purchase price, the lender may not finance the amount the buyer originally expected.
For example:
- Contract price: $550,000
- Appraised value: $530,000
- Difference: $20,000
The buyer may need additional cash, a change in financing, or a renegotiated purchase price.
What is an appraisal gap?
An appraisal gap is the difference between the agreed purchase price and the appraised value. Sometimes buyers offer to cover a certain amount of that difference. For example, a buyer might agree to cover an appraisal gap of up to $10,000.
That can make an offer stronger, but I still want to know whether the buyer has the financial resources to follow through. And the wording matters. An appraisal gap agreement, a complete waiver of an appraisal condition, and a financing contingency are not necessarily the same thing. The specific contract and addenda determine the buyer's rights.
4. Due Diligence and Home Inspection Contingencies
The due diligence period is when buyers investigate the property. They may review the seller disclosures, hire a home inspector, evaluate the roof or foundation, research HOA documents, and investigate anything else important to their purchase.
Under the Utah REPC version commonly used in 2026, a buyer with the standard due diligence condition may cancel by the agreed deadline if the results are unacceptable. That means an offer with a long due diligence period can leave a seller waiting longer to know whether the buyer intends to proceed. A shorter period may reduce that uncertainty, assuming the buyer can reasonably complete their inspections.
What if a buyer waives due diligence?
Waiving due diligence can make an offer more attractive to a seller because it removes a significant contractual cancellation protection. But it doesn't mean every other condition disappears. The buyer may still have financing, appraisal, title, or other contractual rights. I don't assume that a buyer waiving inspections has eliminated every possible risk. I review exactly what was waived and what protections remain.
5. Earnest Money: How Much Is the Buyer Putting at Risk?
Earnest money is the deposit a buyer provides to demonstrate their commitment to the purchase. For example, one buyer might offer $2,000 in earnest money while another offers $10,000.
A larger deposit may indicate greater commitment, but the amount alone doesn't tell us whether the money is refundable, or when.
When does earnest money become nonrefundable in Utah?
This is where a lot of sellers misunderstand how protected they really are. Earnest money doesn't become nonrefundable the moment the buyer makes an offer or deposits the funds. And it isn't fully at risk just because the due diligence deadline passes.
Here's the part sellers should understand. For a financed buyer, the financing and appraisal condition typically extends past the due diligence deadline. Under the December 2024 Utah REPC, if the buyer cancels based on that financing and appraisal condition by its deadline, the earnest money is generally refundable. And a buyer canceling under the financing condition generally does not have to prove the details of their financing problem to the seller in order to get their deposit back.
So in practical terms, a financed buyer's earnest money is often effectively refundable right up until the financing and appraisal deadline, not just the due diligence deadline. That's a meaningful distinction. A seller who thinks the deposit became locked in at the end of due diligence may be counting on protection that doesn't fully exist yet.
This is exactly why I look at the financing and appraisal deadline, not just the due diligence deadline, when I tell a seller how committed a buyer really is. The specific REPC version, the conditions selected, additional earnest money provisions, and any addenda can all change the result, so I review the actual contract rather than assuming the standard timeline.
What about "nonrefundable" earnest money?
A buyer can strengthen their offer by agreeing to make some or all of their earnest money nonrefundable, sometimes right away or after a certain date. That's a real signal of commitment, and it can make an offer stand out.
But nonrefundable may not mean what a seller assumes. It generally means the buyer forfeits the deposit if the buyer backs out without a valid contractual right to cancel. It does not mean the seller automatically keeps the money in every scenario. If the transaction fails for a reason that isn't the buyer's breach, or if the seller is the one who doesn't perform, the buyer may still be entitled to their earnest money back.
So nonrefundable is better understood as "the buyer is putting this money at risk if they walk away without cause," not "the seller keeps it no matter what happens." It's a strong term when it's offered, but like everything else in the REPC, the exact language and conditions control the outcome.
6. Financing and Appraisal Deadlines
An offer can look strong but still give the buyer several weeks to determine whether they can complete the purchase. That's why contract deadlines matter, and as the earnest money point above shows, the financing and appraisal deadline is often the real moment a buyer becomes committed.
In the December 2024 Utah REPC, financing and appraisal share a specified deadline. The exact form used in your transaction is important, especially during the current transition to an updated REPC, which I cover below.
When comparing offers, I want to know:
- How long does the buyer have to complete due diligence?
- When do applicable financing and appraisal protections expire?
- Are there any special cancellation provisions?
- How much time remains between those deadlines and settlement?
Shorter deadlines may reduce uncertainty, but unrealistic deadlines can also create problems. A buyer who needs financing should have enough time for the lender to complete the required work.
7. Home Sale Contingencies
Sometimes a buyer needs to sell their current home before purchasing yours. This is called a home sale contingency. These offers can work, but they introduce another transaction into yours.
I want to know whether the buyer's home is already listed, under contract, or not yet on the market. There's a meaningful difference between a buyer who needs to list their home and one whose home is already under contract with a scheduled closing.
The time clause can protect a seller
If you accept an offer that's contingent on the buyer selling their current home, the key protection to ask for is a time clause, sometimes called a kick out. It's usually added through a negotiated sale contingency addendum, and it works like this: you agree to the buyer's contingency, but you keep your home on the market. If another acceptable offer comes in, you notify the contingent buyer, and they then have a set amount of time, often somewhere in the range of 24 to 72 hours depending on what's negotiated, to either remove their home sale contingency and move forward, or step aside so you can accept the new offer.
That way you aren't taking your home off the market indefinitely while you wait on a sale you don't control. The time clause keeps your options open.
These protections are not automatic, though. A kick out, the notice period, and how it all works must be established in the agreement. If you need to sell quickly or have already committed to purchasing another home, a sale contingency deserves careful consideration, and a time clause is often what makes one workable.
8. Seller Concessions and Other Requests
Buyers may request help with closing costs, mortgage rate buydowns, a home warranty, or certain HOA fees. These requests affect your net proceeds. They also need to work with the buyer's financing because lenders have limits on certain seller contributions.
Other requests, such as including a washer, dryer, or refrigerator, can be bargaining chips rather than financing concessions. I look at each expense separately.
For more details, read my guide to seller concessions in Utah.
9. Settlement Dates, Closing, and Possession
Sometimes the best offer isn't the one with the fastest closing. Maybe you need time to purchase another home. Maybe your new construction home isn't finished yet. Or perhaps you've already moved and would prefer to close as soon as possible. These circumstances can make certain offers more attractive.
Settlement isn't necessarily the day the buyer gets the keys
Utah's REPC distinguishes between settlement, closing, and possession. Settlement generally involves signing the required documents and delivering the required funds, other than the new loan proceeds. Closing involves the remaining required steps, including funding and recording. Possession is determined by the contract.
A buyer might agree to let you stay in the home for a short period after closing through a properly documented leaseback arrangement. That could be valuable if you're trying to coordinate two moves. But a leaseback also involves responsibilities, insurance considerations, and other terms that need to be addressed in writing.
Comparing Three Offers on a Utah Home
Let's put these ideas together. Imagine your home is listed for $540,000 and you receive three offers.
| Offer A | Offer B | Offer C | |
|---|---|---|---|
| Purchase price | $555,000 | $540,000 | $530,000 |
| Financing | Conv, 5% down | Conv, 25% down | Cash |
| Seller concessions | $12,000 | $0 | $0 |
| Price less concessions | $543,000 | $540,000 | $530,000 |
| Appraisal condition | Yes | Waived | None |
| Due diligence | 14 days | 7 days | 10 days |
| Earnest money | $5,000 | $10,000 | $10,000 |
| Settlement target | 35 days | 30 days | 14 days |
All three offers are hypothetical. The figures below assume the same $300,000 mortgage payoff and $25,000 in other selling expenses for illustration. Actual expenses may differ by offer.
| Offer A | Offer B | Offer C | |
|---|---|---|---|
| Price less concessions | $543,000 | $540,000 | $530,000 |
| Assumed payoff and expenses | $325,000 | $325,000 | $325,000 |
| Illustrative net proceeds | $218,000 | $215,000 | $205,000 |
Which offer would I recommend?
That depends on the seller's priorities and what we learn about the buyers.
Offer A has the highest estimated proceeds, but the buyer has a smaller down payment, an appraisal condition, and a longer due diligence period. We would want to understand whether the price is supported by comparable sales.
Offer B offers $3,000 less in estimated proceeds, but the buyer has a larger down payment, no appraisal condition, and a shorter due diligence period. That could make it attractive, especially if the buyer has verified funds available to cover an appraisal gap.
Offer C has the lowest estimated proceeds, but a verified cash buyer offering a quick closing could be appealing to someone who needs to sell promptly. Even a cash offer can fall through, so I would still review its contingencies and verify funds.
There's no universal winner. If my seller needs the highest possible proceeds and has flexibility, we may be more comfortable with Offer A. If they're purchasing another home and need greater confidence in the timeline, Offer B might be worth serious consideration. If speed is their priority, Offer C may deserve more attention.
And we don't necessarily have to accept any of them exactly as written. We can consider negotiating terms.
Understanding Utah's Real Estate Purchase Contract
The Utah Real Estate Purchase Contract, usually called the REPC, establishes the terms agreed upon by the buyer and seller. It addresses matters such as purchase price, earnest money, included property, deadlines, buyer conditions, settlement, and possession.
One timely note for 2026. A new version of the REPC has been approved by the Utah Real Estate Commission and, if it clears final approval, is expected to take effect January 1, 2027, replacing the current form that's been in use since December 2024. The new version reorganizes the contract and updates a number of related forms. I broke down what's changing, and why I'm genuinely glad about a lot of it, in my guide to the 2026 REPC changes for buyers and sellers.
For now, what matters when you're comparing offers is this: you should not assume every offer contains the same default protections or deadlines. The specific version being used, the boxes selected, and the attached addenda determine the agreement. An offer may include a negotiated appraisal gap provision, additional earnest money, a home sale condition, or changes to a buyer's cancellation rights. Those details need to be reviewed together.
You can find Utah's state approved contract materials through the Utah Division of Real Estate.
How I Help My Sellers Evaluate Offers
When my clients receive an offer, I don't want them to feel rushed into making a decision based only on the purchase price.
I review the contract, explain the buyer's conditions and deadlines, and prepare estimated net proceeds. I also look at the financing, appraisal risk, earnest money, and anything that could affect our ability to close. If there are multiple offers, I compare them side by side.
And if there's room to negotiate, we talk about which terms might improve the agreement without unnecessarily risking the buyer walking away. Sometimes that means asking for a higher price. Sometimes it's reducing a concession, shortening a deadline, or adjusting possession.
My job is to explain the advantages and risks of each option so my sellers can make an informed decision. I'm not the one who has to live with the outcome. They are.
Frequently Asked Questions
Should I always accept the highest offer on my house?
No. A higher offer may include concessions, contingencies, or financing risks that make another offer more attractive. Compare estimated proceeds and the likelihood of closing.
Is a cash offer better than a financed offer?
Not always. Cash removes the mortgage approval requirement and can mean a quicker, more certain closing, but the dates on the contract tell you how strong it really is. A cash buyer with a long due diligence period and a distant settlement date isn't offering the speed cash is supposed to bring. Cash buyers can also still have contingencies, and a well qualified financed buyer may offer better terms or higher proceeds.
Can a buyer back out after I accept their offer in Utah?
Possibly. The buyer's rights depend on the REPC, applicable conditions, deadlines, and addenda. A timely cancellation under a valid contract condition may allow the buyer to terminate without forfeiting earnest money. For a financed buyer, that cancellation right under the financing and appraisal condition often extends past the due diligence deadline.
When is a buyer's earnest money actually at risk in Utah?
Later than many sellers assume. The deposit isn't locked in just because the due diligence deadline passes. For a financed buyer, the financing and appraisal condition typically extends past that deadline, and if the buyer cancels under it in time, the earnest money is generally refundable, without the buyer having to prove the details of the financing problem to the seller. In practical terms, the deposit is often effectively refundable up until the financing and appraisal deadline. The specific REPC version and any addenda determine the exact result.
Does "nonrefundable" earnest money mean the seller always keeps it?
No. Nonrefundable earnest money generally means the buyer forfeits the deposit if they back out without a valid contractual right to cancel. It doesn't mean the seller keeps it in every situation. If the deal fails for a reason that isn't the buyer's breach, or the seller fails to perform, the buyer may still recover it. It's a genuine sign of commitment, but the contract language controls what actually happens.
What is a time clause or kick out on a home sale contingency?
It's a seller protection used when you accept an offer that depends on the buyer selling their current home. You agree to the contingency but keep your home on the market. If another acceptable offer comes in, you notify the contingent buyer, who then has a set window, often around 24 to 72 hours, to remove their home sale contingency and proceed or step aside so you can take the new offer. It must be set up through the negotiated addendum, it isn't automatic.
Is Utah getting a new REPC?
Yes. A new version of the Utah REPC has been approved by the Utah Real Estate Commission and, pending final approval, is expected to take effect January 1, 2027, replacing the form in use since December 2024. It reorganizes the contract and updates several related forms. I explain the changes in my guide to the 2026 REPC changes for buyers and sellers.
What happens if the appraisal is lower than the offer?
The buyer may need additional funds, a financing adjustment, or a negotiated price reduction. Whether the buyer can cancel without losing earnest money depends on the contract.
How do I choose between two similar offers?
Compare the estimated net proceeds, financing strength, contingencies, deadlines, earnest money, and possession terms. The better offer is the one that best fits your priorities and acceptable level of risk.
Final Thoughts
Selling your home involves more than getting someone to agree to a price. The terms of an offer can affect how much money you receive, how long the transaction takes, and whether it closes. I want my sellers to understand those terms before making a decision.
If you're preparing to sell in Utah County or already have offers to review, I'd be happy to help you compare the numbers and understand your options.
Related Reading
- Seller Concessions in Utah: What Buyers Can Ask For and What Sellers Should Know
- Utah REPC Changes in 2026: What Buyers and Sellers Should Know
- How Much Does It Cost to Sell a House in Utah?
- New Construction vs. an Existing Home in Utah County
This article is for general informational purposes only and is not legal, tax, or financial advice. The REPC is a binding legal contract, and its terms, deadlines, and your rights under it depend on the specific version, the conditions selected, and any addenda. Nothing here is a substitute for reviewing your actual contract with your agent and, where appropriate, a qualified attorney. Consult the right professional for guidance specific to your situation.