How Do I Choose the Best Offer When Selling My Monterey Park Home?
Listed by May Kunka of Compass in Monterey Park
The highest offer isn't automatically the best offer on your Monterey Park home. When comparing buyers, I also look at financing, down payment, proof of funds, contingencies, appraisal risk, deposit, seller credits, closing timeline, possession terms, and anything else that could affect how much you actually receive or how likely the transaction is to close. The goal is to choose the strongest overall combination of price, terms, and certainty.
Your Monterey Park home hits the market.
We have a busy weekend.
Then Monday comes around and I call you:
“Good news. We have multiple offers.”
Fantastic.
Naturally, the first question is:
“Which one is the highest?”
I definitely want to know that.
But that's not necessarily the same as:
“Which one should we accept?”
Those are two different questions.
Why Isn't the Highest Offer Automatically the Best?
Because an offer is much more than a purchase price.
California DRE reminds buyers that contingencies and special conditions become part of the offer and can include financing, inspections, repairs, and other requirements. Once an offer is accepted and communicated, those written terms become part of the binding agreement.
So when I'm helping a seller compare offers, I'm not just looking at:
$1,200,000
versus
$1,225,000.
I'm reading everything.
Maybe the $1,225,000 buyer wants a huge credit.
Maybe they have a very small down payment.
Maybe they have a lengthy contingency period.
Maybe they're depending on selling another property.
Maybe the $1,200,000 buyer has strong financing, substantial cash, shorter contingencies, and exactly the closing date you want.
Now we have an actual decision to make.
Start With the Purchase Price
Of course price matters.
If we're comparing:
Offer A: $1,180,000
and
Offer B: $1,250,000
I'm interested in that $70,000 difference.
But before we celebrate, I want to understand how the buyer got to $1,250,000.
Does the price make sense?
Is the buyer financially capable of completing the purchase?
Are they expecting the property to appraise at that amount?
What happens if it doesn't?
Are they requesting credits?
That's where we start digging deeper.
Look at the Net Price, Not Just the Headline Price
Suppose:
Offer A
Purchase price: $1,220,000
Seller credit requested: $20,000
Offer B
Purchase price: $1,210,000
Seller credit requested: $0
At first glance:
Offer A is $10,000 higher!
But before other differences, Offer A would actually produce $10,000 less after accounting for that requested credit.
This is why I like comparing offers side by side.
The giant number at the top of page one isn't necessarily the number that matters most.
What About Buyer-Agent Compensation?
This is another term we now need to evaluate carefully.
California DRE explains that buyers and their agents negotiate compensation through their buyer representation agreement. A buyer can request that the seller pay some or all of the amount the buyer owes their agent as a seller concession, and the seller may accept or reject that request.
So if one offer includes a request for seller-paid buyer-agent compensation and another doesn't, that belongs in our comparison of the offers' economics.
Again:
What is your estimated net?
That's the question.
How Important Is the Buyer's Down Payment?
It matters, but maybe not for the reason you think.
A buyer putting 50% down isn't automatically a better human being or more deserving buyer than someone putting 10% down.
We're evaluating transaction risk.
A larger down payment may sometimes indicate that the buyer has more financial flexibility.
But I still want to see:
Preapproval.
Proof of funds.
Loan type.
Cash reserves.
Financing terms.
A buyer can have a large down payment and still have financing issues.
Don't judge the entire offer from one number.
What Is Proof of Funds?
If the buyer says they're putting:
$400,000 down
I want some reasonable evidence that they actually have the money.
Proof of funds can help demonstrate that the buyer has the cash needed for their down payment and closing expenses.
If it's a cash offer, this becomes even more important.
Someone writing:
ALL CASH
on the offer isn't enough for me.
Great.
Show me the funds.
Is a Cash Offer Always Better?
No.
Cash can be very attractive because there isn't a mortgage approval process.
But imagine:
Cash Offer
$1,150,000
Financed Offer
$1,225,000
with strong preapproval, substantial down payment, and solid terms.
Would I automatically tell you to give up $75,000 because the first buyer has cash?
Of course not.
We compare the actual risks and benefits.
Cash has value.
That doesn't mean it has unlimited value.
Why Does Financing Matter?
If the buyer needs a loan, I want to understand how strong their financing appears.
California DRE specifically identifies financing as one of the contingencies buyers may include in an offer.
So I want to know:
Are they preapproved?
How much are they financing?
What type of loan?
How far has the lender reviewed the buyer?
Can the lender meet the closing timeline?
Are there unusual financing conditions?
If needed, I may want to speak with the lender.
I can't guarantee a buyer's loan will close.
But I can try to understand how prepared they are.
What Is the Loan Contingency?
A financing or loan contingency can give the buyer contractual protection related to obtaining their loan, depending on the language of the agreement.
That matters to you as the seller.
Maybe one buyer has a longer financing contingency.
Another has a shorter one.
Another structures their offer differently.
I don't simply say:
“Shorter is always better.”
I ask:
“Is this buyer actually capable of performing under the terms they're offering?”
A wildly aggressive term isn't valuable if the buyer can't meet it.
What About the Appraisal Contingency?
This can become very important when the offer price gets aggressive.
California DRE explains that a lender's appraiser evaluates the property and develops an opinion of value using comparable homes.
Suppose we list at:
$1,150,000
and receive an offer for:
$1,250,000.
Fantastic.
But the buyer is financing most of the purchase and has an appraisal contingency.
What happens if the appraisal comes in at:
$1,190,000?
That's something I want to think about before we accept the offer.
What Is an Appraisal Gap?
Let's say a buyer offers:
$1,250,000
but says that if the property appraises lower, they are willing to cover a specified amount of the difference with additional cash.
That can reduce some of the seller's appraisal risk.
For example:
Purchase price: $1,250,000
Appraised value: $1,220,000
Difference: $30,000
If the buyer has appropriately agreed to cover that gap and has the funds to do so, that's meaningful.
Again, the exact contract language matters.
I'm not relying on:
“Don't worry, we'll cover it.”
I want important terms in writing.
California DRE's contract guidance specifically emphasizes that negotiated terms and changes should be documented in writing.
How Important Is the Inspection Contingency?
Very.
The buyer may have an opportunity to investigate the property and potentially request:
Repairs.
Credits.
Price reductions.
Additional inspections.
Or make other decisions available under the contract.
California DRE recommends buyers inspect major systems and notes that repairs discovered through inspections can become part of negotiations with the seller.
So if one buyer offers $15,000 more but later asks you for $30,000 after inspections, that higher offer doesn't feel quite as exciting anymore.
Should I Choose the Buyer Who Waives Inspection?
Not automatically.
A buyer's decision regarding contingencies is theirs to make with their agent and appropriate professionals.
From your perspective as the seller, fewer contingencies may reduce certain transaction risks.
But I'm still evaluating the entire offer.
Maybe the buyer waives inspection but has weak financing.
Maybe another buyer keeps an inspection contingency but has otherwise exceptional terms.
We're comparing the whole package.
What About the Earnest Money Deposit?
I pay attention to the deposit too.
The earnest money deposit is money the buyer puts into escrow under the terms of the purchase agreement.
A larger deposit may demonstrate commitment, but it does not mean the seller automatically receives that money if something goes wrong.
The buyer's contractual rights and California rules still matter.
So I don't choose an offer solely because:
“They put down a huge deposit!”
It's one piece of the picture.
Does the Closing Date Matter?
Absolutely.
Maybe you already bought another home.
You want to close quickly.
A buyer offering a 21-day escrow may be attractive.
Or maybe you're still living in the house and need:
45 days.
Now the buyer offering a longer escrow may fit your life better.
This is why I like knowing your priorities before the offers arrive.
The strongest offer is often the one that works best for your particular situation.
What If I Need Time to Move After Closing?
Then possession matters.
Maybe we negotiate a rent-back or another possession arrangement that gives you additional time after closing.
One buyer might offer:
Higher price.
No flexibility.
Another might offer:
Slightly lower price.
And exactly the possession terms you need.
How much is that convenience worth to you?
That's part of our conversation.
What If the Buyer Wants Me to Pay Closing Costs?
Then we're back to net proceeds.
If the buyer offers:
$1,200,000
and requests:
$15,000 seller credit
we need to account for it.
Credits can sometimes be useful tools for buyers dealing with closing costs or financing, subject to lender and transaction requirements.
I'm not automatically opposed to credits.
I simply want them reflected in our comparison.
Can We Counter More Than One Buyer?
Multiple-offer situations have different strategies available, and the exact approach should be handled carefully.
A seller can accept an offer, reject an offer, allow it to expire, or make a counteroffer depending on the circumstances and the contract. California DRE explains that if a seller changes an unacceptable term, a counteroffer can be used to continue negotiations.
Sometimes we may ask buyers to improve their offers.
Sometimes we counter a particular offer.
Sometimes the strongest offer is already good enough that we don't want to risk losing it.
There isn't one strategy I use every time.
Should I Ask Everyone for Their "Highest and Best"?
Maybe.
But I don't automatically do it.
Imagine we have one offer that is:
Excellent price.
Strong financing.
Great terms.
Exactly your desired closing date.
Very little unnecessary complexity.
Do we risk irritating that buyer just to see whether they'll add another $5,000?
Maybe.
Maybe not.
The answer depends on the situation.
Multiple offers aren't a game where the goal is to squeeze every buyer until someone breaks.
The goal is to create the strongest possible transaction for you.
Could the Highest Buyer Be Overbidding Just to Win?
Possibly.
This is something I pay attention to.
A buyer might think:
“I'll offer way over asking, get the house, and renegotiate later.”
I'm not saying that's what every aggressive buyer is doing.
But when one offer is dramatically higher than the others, I want to understand it.
Let's say we receive:
$1,180,000.
$1,190,000.
$1,205,000.
$1,210,000.
And:
$1,300,000.
I'm thrilled.
I'm also asking questions.
Why is this buyer $90,000 above everyone else?
Can they support it?
What does their financing look like?
What's their appraisal strategy?
What contingencies remain?
I don't want the $1.3 million offer turning into the $1.18 million transaction three weeks later.
How Does the Monterey Park Market Affect This?
Monterey Park remains competitive, but the numbers show why we shouldn't assume every listing will produce a bidding war.
Redfin's data for the three months ending August 2026 shows a median sale price of approximately $949,000 and a sale-to-list ratio of about 99.3%.
About 30.6% of homes sold above asking, while roughly 23.6% of listings had price reductions. Redfin currently characterizes the Monterey Park market as very competitive and notes that many homes receive multiple offers.
To me, that means:
A well-positioned property can absolutely create competition.
But you still have to earn it.
Pricing, condition, presentation, and buyer demand for your particular home matter.
What If We Only Get One Offer?
Then we evaluate that offer.
I don't want sellers thinking:
“Only one offer means something went wrong.”
One strong buyer can be all we need.
We look at:
Price.
Terms.
Financing.
Contingencies.
Credits.
Timeline.
Your net.
And your alternatives.
Then we decide whether to:
Accept.
Counter.
Decline.
Or continue marketing.
Should I Wait for Another Offer?
Maybe.
But be careful.
A real offer in your inbox today is worth more than an imaginary offer you hope arrives next week.
If the current offer is weak and we've only been on the market for two days, waiting may make sense.
If we've been listed for six weeks and finally receive a reasonable offer, that's a very different situation.
Context matters.
Can I Accept Another Offer While I'm Reviewing One?
Before an offer has been accepted and that acceptance communicated, the seller may generally continue marketing the property and consider other offers, subject to the circumstances and any contractual obligations.
California DRE's contract guidance notes that a seller may continue offering a property and accept another offer before notification of acceptance of the first offer.
This is one reason offer deadlines matter.
But I also don't like unnecessarily dragging buyers along.
We should have a clear strategy.
What Is a Backup Offer?
Sometimes we have:
Buyer #1
in first position.
And:
Buyer #2
willing to become the backup.
That can be useful.
If the first transaction cancels under circumstances that allow the backup to move forward, we may already have another buyer positioned rather than starting completely over.
Backup offers can be particularly valuable when we had strong initial activity.
Don't Choose an Offer Based on Emotion
This is important.
Maybe one buyer writes a beautiful story about why they love your house.
Maybe another buyer is an investor.
Maybe someone says they're going to raise their family there.
I want to be careful.
We need to evaluate offers using legitimate transaction-related terms, not personal characteristics of buyers.
The California Department of Real Estate also reminds agents that sellers and buyers remain responsible for protecting their interests and understanding the agreements they enter.
My focus is:
Which offer best meets your financial and transactional goals?
This Is Why I Make an Offer Comparison
If we receive several offers, I don't want to call you and say:
“We got seven! This one's highest. Sign here.”
No.
I'm going to organize the important terms so we can compare them.
That might include:
Purchase price.
Estimated net.
Financing.
Down payment.
Deposit.
Proof of funds.
Loan contingency.
Appraisal contingency.
Inspection contingency.
Requested credits.
Buyer-agent compensation request, if any.
Closing date.
Possession.
Other important terms.
Then the differences become much easier to see.
Sometimes the Second-Highest Offer Is the One I Like Better
Let's imagine:
Offer A
$1,250,000
5% down.
Lengthy contingencies.
Large seller credit.
No appraisal-gap protection.
Offer B
$1,225,000
25% down.
Strong proof of funds.
No seller credit.
Shorter contingency periods.
Terms that work perfectly with your move.
Which is better?
I'm not going to answer that from the purchase price alone.
We're going to calculate the financial difference and compare the transaction risk.
Maybe Offer A is still better.
Maybe Offer B is.
That's the work we need to do.
Frequently Asked Questions
Should I always accept the highest offer on my house?
No.
Purchase price is important, but sellers should also evaluate financing, contingencies, credits, appraisal risk, deposit, closing timeline, possession, and other terms affecting the likelihood and economics of closing.
Is a cash offer better than a financed offer?
Not automatically.
Cash removes mortgage-financing risk, which can be valuable, but a strong financed offer may have a substantially higher price or better overall terms.
Compare the actual offers rather than assuming cash always wins.
What happens if my house doesn't appraise for the offer price?
If the buyer is financing the purchase and the appraisal comes in low, what happens next depends on the contract, financing, appraisal terms, available cash, and negotiations between buyer and seller.
This is why appraisal risk should be evaluated before accepting an aggressive offer.
Should I accept an offer with no inspection contingency?
Fewer contingencies may reduce certain risks for the seller, but that doesn't automatically make the offer the best one.
The entire offer should be evaluated together.
Should I ask buyers for their highest and best offer?
It can be a useful strategy in some multiple-offer situations, but not every sale requires it.
Sometimes the strongest existing offer already meets the seller's goals.
Does a large earnest money deposit make an offer stronger?
It can be one positive factor, but the seller doesn't automatically receive the deposit if the buyer cancels. The purchase agreement and applicable rights still govern what happens to deposited funds.
Can I choose a lower offer when selling my Monterey Park home?
Yes. A seller can evaluate the complete financial and contractual terms of competing offers rather than selecting solely by purchase price.
So What's the Next Step?
If you're selling your Monterey Park home and we receive multiple offers, I'm not going to dump seven contracts into your inbox and say:
“Which one do you like?”
That's my job.
I'm going to go through them.
I'm going to look at the price.
Then I'm going to look past the price.
What is the estimated net?
Is there a seller credit?
Is there a request for buyer-agent compensation?
How much is the buyer putting down?
Do they have proof of funds?
What does their financing look like?
How long are their contingencies?
What happens if the appraisal comes in low?
When do they want to close?
When do you need to move?
Are there any unusual terms?
And most importantly:
How likely does this offer appear to get us from acceptance all the way to closing on the terms you agreed to?
Monterey Park's current market can still produce multiple offers. Redfin reports that about 30.6% of homes sold above asking over the three months ending August 2026 and describes the market as very competitive.
But multiple offers are only helpful if we know how to evaluate them.
After nearly 20 years helping sellers throughout Monterey Park and the San Gabriel Valley, I've learned that the offer with the biggest number at the top isn't always the one that looks best after you read the next 15 pages.
If you're thinking about selling your Monterey Park home, I'd be happy to help you build the strategy before we list, including pricing, preparation, offer timing, and exactly how we'll compare buyers if we're fortunate enough to have several competing for your home.