How this works
Plain-English definitions for the words that come up when more than one buyer wants the same home.
Glossary of multiple-offer terms
Plain-English definitions for the words that come up when more than one buyer wants the same home.
Appraisal gap coverage
A buyer's promise to cover some or all of the difference if the home appraises below the offer price.
Try the related tool →Auto-raise
The buyer sets a private ceiling and increment, and their offer rises automatically when someone passes them.
Try the related tool →Backup offer
An offer the seller ranks behind the chosen one, ready to step in if the first falls through.
Try the related tool →Best and final
A last, timed chance for selected buyers to submit their strongest offer.
Try the related tool →Concessions
Money the seller agrees to credit the buyer, often toward closing costs. Lowers the seller's net.
Try the related tool →Contingency
A condition that must be met for the sale to go through, such as inspection, appraisal or financing.
Try the related tool →Escalation clause
A promise to beat competing offers by a set amount, up to a cap, written without seeing the other offers.
Try the related tool →Highest and best
A request that every buyer submit their strongest offer once, usually without seeing the others.
Try the related tool →Increment
The minimum amount a new offer must exceed the current highest offer by.
Try the related tool →Multiple-offer situation
When a seller receives more than one offer on the same home at the same time.
Try the related tool →Net to seller
What the seller actually walks away with after commission, closing costs, concessions and payoff.
Try the related tool →Offer deadline
The time by which offers are due. In a BindingOffers round, the listing agent sets it.
Try the related tool →Offer round
A transparent process where invited buyers see the current highest offer and can submit a higher one.
Try the related tool →Offer to beat
The current highest offer price, shown to every invited buyer in an offer round.
Try the related tool →Pre-approval
A lender's conditional commitment to lend a buyer up to a set amount.
Try the related tool →Rent-back
An arrangement letting the seller stay in the home for a period after closing.
Try the related tool →Soft close
A deadline that extends when a late offer comes in, so every buyer has a chance to respond.
Try the related tool →Written offer
The complete, formal purchase offer a buyer delivers after committing to a price in an offer round.
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