![]() Whenever I am in a highest and best situation I make the highest offer I can based off my buying criteria and profit potential. It helps to know how many offers there are, but It only takes one offer to beat you. There is very little chance the listing agent will tell you how much the other offers are and even if they do, the other buyers could raise their offers. As a listing agent myself I won’t answer any of them, except how many offers there are. It doesn’t hurt to ask and see if they will answer. If you have any experience with highest and best, you know the listing agent will not answer most of these questions. Is there anything special the seller is looking for? Closing date, financing, rent back? What is the highest offer you have now?ĥ. You can’t exactly talk directly to the listing agent, but you need your agent to get as much information as possible. If you are dealing with multiple offers, you most likely have a real estate agent, and the seller has their own listing agent. Can you get information from the listing agent about other offers? They are the owner of the house and they have every right to try to maximize their profit or cut their losses. Highest and best is usually the fairest way to handle multiple offers.īanks and traditional sellers also use highest and best to try to get the most money they can for their house. Banks, in particular, have been sued a lot and they want to do everything by the book, with paperwork to prove it. The biggest reason is they want to formally give every buyer notice of multiple offers and give them a chance to raise their offer. Highest and best situations can make buyers mad, but the sellers have a good reason to use it. ![]() For more detailed tips on getting your offer accepted here is a great article on how to make an offer that will be accepted. The worst thing that can happen is you get beat out, so why not try? Why not leave your offer the same as your original offer and if you get it great, if not move on. If you want to get the best deals you have to take part in highest and best bidding wars. I hear buyers say “I don’t want to get in a bidding war” and they withdraw their offer. Many buyers do not like it when a seller asks for highest and best. Even if a seller does not formally ask for highest and best, I would treat any situation where a seller gets multiple offers as highest and best. In the past, most traditional sellers may let all buyers know they received other offers, but not officially ask for highest and best. Many traditional sellers (not banks) using highest and best as well. In a highest and best situation, the bank notifies every buyer they have multiple offers, and to submit their highest and best by a certain date and time. The banks started asking for highest and best to give every buyer a fair chance to revise their offers. Because of these policies, banks end up with multiple offers on many of their properties. Banks can take a long time to respond to offers, and some banks have policies that they will not review offers until a home has been on the market for a certain amount of time. I used to list a lot of bank foreclosures, and banks use highest and best in almost every situation when they receive multiple offers. The seller will review all offers at the same time and pick the offer they like best. ![]() In the seller’s formal request, the seller gives each buyer a chance to raise their offer and a date and time all offers must be received by the seller. Highest and best is when a seller receives more than one offer on a property, and they decide to give everyone a chance to submit there best offer. ![]() I am a HUD and REO listing broker as well as a real estate investor, and I am in highest and best situations all the time on my listings and as a buyer. Highest and best has become more popular in the last few years due to decreasing inventory and increased buyer demand. All you can do is analyze the situation as best you can, and make the best offer you can based on your own numbers and needs. The biggest problem in any multiple offer situation is you don’t know what other buyers will offer. It is tough to decide how to revise your offer and how much to raise your offer in a highest and best situation. There are many different strategies you can use when trying to win a highest and best situation. I just made an offer on a short sale late last week where they received multiple offers and they have asked for highest and best. I have been involved in many multiple offer situations as a buyer, seller and listing agent.
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