What should you do if a home seller asks for more money after claiming they have higher offers from other buyers?
This situation can feel stressful, especially if you’ve already started imagining yourself living in the home. But the most important thing is not to make an emotional decision.
If a seller comes back and says they have higher offers from other buyers, take a step back and evaluate the situation objectively. Sometimes multiple offers are real, and sometimes sellers are simply trying to see if buyers will increase their bid.
My advice is to ask yourself one question:
“What is this home worth to me based on the market, not my emotions?”
Before raising your offer, review recent comparable sales, the home’s condition, and your budget. If your original offer was already competitive and aligned with market value, you may not need to increase it at all.
You generally have three options:
- Stand firm on your original offer. If you believe your offer is fair, let the seller decide whether the alleged higher offers are truly better.
- Increase your offer within your comfort zone. If this is a home you genuinely love and can comfortably afford a higher price, consider improving your offer. The key word is comfortably. Never stretch beyond your financial limits because of pressure.
- Walk away. Sometimes the smartest move is recognizing when a deal no longer makes financial sense. Another home will come along, but overpaying can affect you for years.
Also remember that the highest offer isn’t always the best offer. Sellers often consider factors such as financing strength, contingencies, closing timelines, and the likelihood that the transaction will actually close.
One lesson many experienced buyers learn is that winning the bidding war isn’t always the same as winning the deal. If you end up paying far more than the home’s market value, the excitement of getting the house can fade quickly.
The best approach is to know your maximum number before negotiations begin and stick to it. That way, whether you increase your offer or walk away, you’re making a confident financial decision rather than reacting to pressure from the seller.