A higher offer deserves a serious look. You spent years owning the building, and a difference in price can matter a great deal to what you keep. I wouldn't give that money up just because another buyer says their offer is cleaner.

But a lower offer can be worth accepting when it takes a meaningful problem off your hands. A buyer who can close before your loan comes due may offer something valuable. So may a buyer willing to purchase with the known repair work still unfinished. The mistake is giving up price without knowing how much those terms actually improve your position.

Before choosing between two offers, I'd try to improve both. The higher bidder may be able to resolve the concern about funding. The lower bidder may have room on price. Your first choice doesn't have to be between the proposals exactly as they arrived.

The price difference may be smaller than it looks

Suppose one buyer offers more but expects you to replace the roof before closing. Another offers less and accepts the roof's known condition. The first buyer is asking you to sell a different result, with a repair bill and responsibility for completing the work. The extra price has to pay for that before it becomes extra money for you.

The same problem comes up when an offer assumes a vacant unit the owner hasn't agreed to deliver. That assumption needs to be resolved before treating the higher number as available proceeds. A price based on the building you have is more useful than a price based on a change you may not be able to make.

For the serious offers, your broker's net comparison should include the debt payoff, agreed compensation, applicable transfer taxes, escrow and title charges, and each buyer's requested credits. Rent and expense prorations also affect the closing amount; tenant deposits aren't additional sale income. Work you pay for before closing still costs you money even if it never appears as a deduction on the escrow statement.

The California Department of Real Estate notes that closing costs depend on the contract, transaction and property location, and that an estimated closing statement may not include every charge. [2] A generic closing-cost percentage can hide the very differences you're trying to compare.

Read the figure as text

Seller repairs

Owner consequence: You pay for and finish the work; Effect on the comparison: Extra price must cover that cost

Closing credits

Owner consequence: Buyer receives an agreed allowance; Effect on the comparison: Less money reaches the seller

Costs and prorations

Owner consequence: Charges depend on this transaction; Effect on the comparison: Headline prices are not net proceeds

Later closing

Owner consequence: More rent and ownership expenses; Effect on the comparison: Compare the added period separately

The seller net-proceeds calculator is useful for a preliminary estimate. It doesn't calculate income tax or depreciation recapture, so its result isn't the amount you'll ultimately keep after taxes.

A later closing also changes the economics. You continue receiving the building's income and paying its bills. A profitable additional ownership period is different from one that requires cash while a major repair or loan maturity approaches. That difference belongs alongside the proceeds comparison, without counting expenses already included in it a second time.

Cash is useful. So is a buyer who's done the work.

An all cash buyer removes the need for a purchase loan, assuming the funds are available for this acquisition. That can simplify a sale. It doesn't settle the buyer's view of the property or erase inspection conditions in the offer.

A cash buyer who hasn't looked closely at the building may still have a great deal to decide. A financed buyer who has studied the rents, accepted the known condition and advanced the lender's review may be further along. I'd judge the work behind each offer before paying a premium for the words "all cash."

For a financed offer, the lender's familiarity with this particular building matters. A preliminary loan proposal based on a summary of the property tells you less than review of its operating history. Fannie Mae's multifamily guidance, for example, calls for review of rent roll and operating statement updates and investigation of unexplained differences. [1] That is one lending program's guidance, not a universal rule for apartment loans.

The buyer's own money deserves equal attention. Cash already available for the purchase is different from equity still dependent on a partner's approval or another property's sale. A well-known name doesn't resolve that dependency, particularly if the entity signing the offer can change or still needs someone else's authorization. Those are reasons to strengthen the terms, not automatically discard the buyer.

A large deposit and a fast close need to mean something

A deposit's size alone doesn't tell you how committed the buyer is. Its practical value depends on when it's due and the conditions governing cancellation and release. It also forms part of the purchase price, not a bonus paid on top of it.

A short inspection period can be credible when the buyer has already completed much of the review. On an occupied West LA apartment building, though, consultants still need workable access to the units and building systems. If that hasn't been arranged, a fast closing date may amount to an extension request waiting to happen. The seller's side has to be ready too; missing records can undermine a schedule even when the buyer is prepared. Our Westside selling guide covers that preparation in more detail.

Have a California real estate attorney review the actual cancellation, remedy and deposit provisions before relying on them; a familiar deadline from a residential sale is no substitute for the proposed agreement. Escrow follows written instructions and remains neutral, rather than negotiating those protections for you. [2]

If your loan maturity makes delay expensive, a supported closing schedule can justify accepting less. If you're comfortable continuing to own the property, a higher price with a longer, workable escrow may serve you better. The same terms can be worth different amounts to different owners.

Read the figure as text

All cash

Meaningful when: Funds are available for this purchase; Seller benefit: No purchase-loan dependency

Financed purchase

Meaningful when: Equity is supported and lender review advanced; Seller benefit: Less unfinished funding work

Larger deposit

Meaningful when: Timing and contract terms support commitment; Seller benefit: More useful than size alone

Earlier closing

Meaningful when: Access and remaining review fit the date; Seller benefit: Less exposure to costly delay

Negotiate the weakness before giving up the price

A good counteroffer addresses the reason you're hesitating. If the higher bidder still needs partner approval, the negotiation should focus on resolving that dependency. If inspections are the concern, a credible access and review schedule is more useful than another assurance that the buyer moves quickly. The competing buyer should also have a chance to improve the price rather than assume that calling an offer clean earns a discount.

After that negotiation, a lower offer may still be the better choice. I would favor it when the proceeds remain competitive and its stronger terms address a problem that matters to your sale. I wouldn't favor it merely because the other proposal takes more explanation. Your broker should be able to defend the recommendation in terms of the money you're giving up and the specific uncertainty you're reducing.

If you're considering a sale, request a property valuation. I can help you judge which terms are worth negotiating for your building and where giving up price would cost more than it buys.

Sources

[1] Fannie Mae, Multifamily Selling and Servicing Guide, effective February 12, 2025, Part II, Chapter 2, Section 203.01. Agency underwriting guidance.

[2] California DRE, Surviving the Real Estate Escrow Process in California, RE 23, Rev. 3/14, sections B.8, B.11, B.15 through B.17 and C.3. General escrow and closing-cost guidance.

This is for general informational purposes only. Consult with your CPA, tax advisor, and/or attorney for guidance specific to your situation.