Don't raise your number reflexively. Say: "That's good to know — congratulations. My offer reflects what this is worth to me, and it's strong on terms as well as price. If the other offer works better for you, I understand." Standing calm forces them to reveal whether the competition is real.
Why they're saying it
Claiming other offers (or other buyers, or other candidates) is designed to trigger loss aversion — the fear of missing out makes you negotiate against yourself and bid up without them lifting a finger.
Real competition usually comes with specifics or a deadline to "highest and best." A vague "we have other interest" with no follow-through is often a nudge, not a fact. Either way, your number should be anchored to value, not to a competitor you can't see.
What to say back
"Thanks for letting me know. My offer is strong on price and clean on contingencies, and I can close on your timeline. If another offer serves you better, no hard feelings — but I think mine gives you the most certainty."
"I'd expect a strong team to have options. I'm confident I'm the right fit, and my ask reflects the value I'll bring. I'm not looking to be the cheapest hire — I'm looking to be the right one."
"Understood. I've made a fair offer on value and terms. If you can work with it, great; if another deal is better for you, I get it. Let me know either way."
Avoid these reactions
- Immediately raising your offer to "beat" an offer you've never seen.
- Getting flustered and revealing how much you want it.
- Walking away in a huff when calm confidence would have surfaced the truth.
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