Highest and Best! What's That?

By
Real Estate Agent with Real Living Kee Realty
http://actvra.in/4vq

 Q.   What's this highest and best?

If you are considering purchasing a bank owned home, an REO as we call them, sooner or later you will hear " the seller is requesting your highest and best offer"

 

This usually happens when there are multiple offers on these bank owned homes. They usually give a deadline, something like ......... multiple offers, highest and best due by Friday the 28th at noon.

Then they will look over all of the h & b offers, and choose 1 to work with. Meaning they may accept the one they chose or they may sometimes counter it. I have even seen where they have rejected all of the h & b offers because none of them were what they were looking for.

 

Requesting H & B is pretty common in our market right now. Now here's the thing ........ how bad do you want this particular house? There is no way for me to know what the other offers are. The other offers could be low, could be full price, they could be over asking / list price, which actually happens quite a lot, especially on a hot new bank listing. So, my advice for what to bid would be ........ what's the most you would be willing to pay for this home? If the most you would be willing to pay is say, 10% below list price, that's fine, we can submit it and roll the dice and see what happens, remember we have no way of knowing what the other offers are. Ours may be the highest, but if it's not, we will not get another chance to up our offer.

 

So make your highest and best offer your highest and best!

 

 

photo credit free digital photos.net

 

 

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 Mike Mitchell -REALTOR®                                                               
 Real Living Kee Realty
 Direct: (586)291-2652

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 Mike Mitchell - Real Living Kee Realty

 

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Rainmaker
395,102
Shar Sitter
Rooms With Style - Minneapolis, MN
Home Staging and Redesign Minneapolis/ St. Paul, M

I know that is the way of the world but it would be nerve racking. If you get it you'll think you bid too high, if you don't get it you'll be mad at yourself for not going a little higher. LOL

Jan 26, 2011 05:47 PM #1
Rainmaker
296,994
Dan and Amy Schuman
Howard Hanna Real Estate Services - Solon, OH
Luxury Home Specialists

Buyers are always asking me what they should offer in this situation, and your advice is perfect. I've seen people lose out because they didn't listen and went in low, then they wanted me to go back and offer more because they were holding back, which was too late. Highest and best is pretty straight forward, and buyers that play games here tend to lose out. Thanks for the post, Mike.

Jan 26, 2011 08:36 PM #2
Rainmaker
270,695
Mike Mitchell
Real Living Kee Realty - Saint Clair Shores, MI
REALTOR (R)

Shar - it can be a little nerve racking!

Dan & Amy - Thanks! Yes, I've had that happen before also and you're right .... it's pretty straight forward.

Jan 27, 2011 08:18 AM #3
Rainmaker
564,387
Diane McDermott
RealtorĀ®, GRI, Landis e2 Real Estate, LLC - Charlotte, NC
Charlotte NC Real Estate Market

Seen this more and more over the past year, even with houses that have been sitting a while.  They'll drop the price to the land of reality and all of a sudden....multiple offers!  Great advice, your highest and best should be the most you're comfortable with so that however it ends up you have no regrets

Jan 30, 2011 05:32 PM #4
Rainmaker
1,250,958
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

Mike - This is every common in our market too, just last week my client had to submit their highest and best on a REO property.

Jan 31, 2011 01:17 PM #5
Rainmaker
270,695
Mike Mitchell
Real Living Kee Realty - Saint Clair Shores, MI
REALTOR (R)

Diane - yeah I've seen this happen with price reductions also. Thanks for commenting!

Jan 31, 2011 06:36 PM #6
Rainmaker
270,695
Mike Mitchell
Real Living Kee Realty - Saint Clair Shores, MI
REALTOR (R)

Michelle - it happens all the time in our market. Thanks for stopping by!

Jan 31, 2011 06:37 PM #7
Ambassador
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Gayle Rich-Boxman Fishhawk Lake Realtor (503)755-2905
Vernonia Realty - Vernonia, OR
"Your Gateway to the Lake" Birkenfeld Oregon

Mike--this is dead on. Thank you, I feel like handing this to every client I run across who leaps in the door ready to spend NO MONEY and get the house for free! (I'm being sarcastic, but hey, you already know that.)

Mar 02, 2011 07:36 AM #8
Ambassador
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Gayle Rich-Boxman Fishhawk Lake Realtor (503)755-2905
Vernonia Realty - Vernonia, OR
"Your Gateway to the Lake" Birkenfeld Oregon

P.S. I noticed the free digital net piece at the bottom...have been looking for "clipart" and this might just do the trick!

Mar 02, 2011 07:52 AM #9
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Rainmaker
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Mike Mitchell

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