Is the HIGHEST offer Always the BEST ?

By
Real Estate Agent with Keller Williams 414-525-0563

Money    We are the listing agents....who want your "highest and best" offer the first time...not fond of multiple counters with twists and turns...inclusions that are not listed as being included....closing dates that no one could possibly accomodate, pennies for earnest money and the all time favorite "Seller to pay closing costs of up to and including $$$$$".

   We believe the best offers are offers where the Buyers have shown some "skin in the game."   The choice to buy a home...save for down payment, pay closing costs, due a timely inspection, are taken care of by the buyer(s).

   Of late, we have seen some "over the top" offers...beyond the asking price with a laundry list of what the seller will do....or in the case of Short Sales, what the Buyer and their agent expect the bank will do for the money that they choose to offer. The list can include but is not limited to....closing cost credit, inclusions of items not included in MLS from major appliances to landscape decor and the list goes on and on.

    Then there are offers...earnest money within 3 days of Sellers' acceptance, 10 day inspection contingency, reasonable price that will appraise...not an out of the park number likely to encounter further negotiation, and a reasonable closing time...ahhh....how do you Spell relief ?  Not always the highest...but these kind of offers are the best.

Posted by

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS

Sally K. & David L. Hanson  

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Re-Blogged 4 times:

Re-Blogged By Re-Blogged At
  1. Anna Banana Kruchten 03/14/2012 04:41 PM
  2. David & Lisa Webber 03/15/2012 06:30 AM
  3. Gabe Sanders 03/19/2012 03:25 AM
  4. Barbara Martino-Sliva 03/19/2012 03:28 AM
Topic:
Home Buying
Tags:
hansonrealestatenet
highest and best
buying a home

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Rainmaker
62,803
Adell Forbes (Realtor)
PEMCO Realty - Atlanta, GA
Sell, Buy, Rent Atlanta Homes

Great points & very true statements. Terms & conditions & ease of closing will win every time over "highest & best" with blatant demands.

 

Mar 15, 2012 04:37 PM #100
Rainer
5,133
Dick Piehl
IMB Bank - Bloomington, MN

First of all, I want to point out that I am a retired mortgage broker who was in the business over 19 years and a home builder for over 14 years. That being said my son-in-law is still a Real Estate Broker and we talk all the time about the market. In todays market I would think a listing agent would be happy to have an offer; ANY OFFER to show a seller. Getting an offer is the most important thing that I can think of. Of course it would be great to get 20 offers that are all "in line" and very simple. But the market isn't like that for most listers today. There may be pockets around the country where this is the case but most of you would "LOVE" to present your sellers with an offer. You and your seller will discuss if the offer is any good. But if you take a 6 month listing and don't present ANY offers you will not keep the listing. But if you have "offers" even if they are not perfect, the sellers will know that you are working their listing. To me, a "bird in the hand is worth two in the bush".

Mar 15, 2012 05:06 PM #101
Rainmaker
1,424,770
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Short Sale - CDPE, REDS

WOW...gone all day on appointments to find our inbox BURSTING with comments...thanks AR-ers.....we know you too know that it is NOT always...just....never just...."all about the money"....Amen....and Women.

Mar 15, 2012 05:49 PM #102
Anonymous
Anonymous
Anonymous

Short sale lenders are looking at the bottom dollar and not usually don't budge on some closing fees.  Highest is not always the best.  Congratulations on the featured post.

Mar 15, 2012 06:13 PM #103
Rainmaker
1,424,770
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Short Sale - CDPE, REDS

Thank you anonymous....!

Mar 15, 2012 06:20 PM #104
Rainmaker
162,049
Karen Steed
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton - Tallapoosa, GA
Associate Broker Haralson Realty licensed in GA and AL

Never ask for closing costs if you want to win highest and best.  Focus on best. 

Mar 15, 2012 08:18 PM #105
Rainer
142,063
EMILIA B COOPER, REALTORĀ® SFR.NCHSE.AHWD
CHARLES RUTENBERG REALTY - Orlando, FL
Short Sales, Foreclosure & Bank Owned Real Estate

Great post Sally and David!!

Mar 15, 2012 08:28 PM #106
Rainmaker
1,424,770
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Short Sale - CDPE, REDS

Closing cost begging begs neither the highest or the best.

Mar 15, 2012 08:31 PM #107
Rainmaker
330,006
Jon Quist
LONG REALTY - Tucson, AZ
Tucson's BUYERS ONLY Realtor since 1996

With the current plethora of poor appraisers I even worry about foreclosures coming in at the contract price. Weird market.

Mar 15, 2012 08:50 PM #108
Rainer
57,445
Wayne Jackson
Lakeshore Realty 208-714-4109 - Hayden, ID
North Idaho Realtor, Serving Coeur dnullAlene and Hayden Lake

Sally & David,

It's not always easy to convince the seller to take the clean offer, some sellers always go for the highest and it doesn't close.

Mar 15, 2012 09:09 PM #109
Rainer
59,244
Eugene Lew
RE/MAX equity group - Happy Valley, OR

What really is bad about highest & best, is that it makes you shoot in the dark, and bid against yourself. Closing costs is almost always needed especially with FHA & VA buyers. Not a problem, as long as the increased price appraises. The worst is when a buyer offers and unrealistic price, only to negotiate it down later on after the inspection or appraisal. Some sellers have gotten wise to this, and put a clause indicating the appraisal is not a way to terminate the transaction.

Price is not always best. Again, cash offer is not always best either, since they often want to lowball.

Mar 15, 2012 11:12 PM #110
Rainmaker
273,796
Paddy Deighan JD PhD
Aston McLaren Inc - Vail, CO
Paddy Deighan J.D. Ph.D

to me, cash is king and it ithere are two relatively close offers and one is cash..it may be the better offer even though it is less money...a track record of getting things done is also important to me

Mar 16, 2012 12:07 AM #111
Rainer
66,468
Lorelei Bennasar
Redfin - Lake Worth, FL
PA

Highest does not always mean best.  Easiest/realistic many times wins out.  Great post!

Mar 16, 2012 09:43 AM #112
Rainmaker
134,204
Liane Thomas - Corona & Riverside Real Estate
The Jet Team, Allison James Estates & Homes - Corona, CA
Bringing you Home!

Agreed, the highest is NOT always the best. That is why as listing agents we need to give the pro and con of each offer and let the seller decide.

Mar 16, 2012 01:35 PM #113
Rainmaker
662,607
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Sally and David

With short sale offers, there is very little room for negotiation. Knowing who the lenders are, what is owed and what the current market values are should provide good guidelines as what offer should be in terms of price, terms and conditions. It also helps to have an experienced short sale agent devising the offer so that it stands the best chance of getting approved while still getting great value for the buyer

Mar 16, 2012 08:47 PM #114
Rainmaker
1,424,770
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Short Sale - CDPE, REDS

If only we could choose the buyers...or their agents...or the appraisers...or ...

Mar 17, 2012 03:39 AM #115
Rainmaker
194,622
Sandy McAlpine
McAlpine Properties - Cornelius, NC
Search Lake Norman Homes For Sale - Lake Norman NC

I thought I was the only one feeling this way. I can't believe the gall of some of the offers i receive on my short sales. Ha

Mar 18, 2012 01:02 PM #116
Rainer
17,362
Mark Hoggard
Churchill-Brown & Associates - Nichols Hills - Oklahoma City, OK

What I've found is that my "seasoned" buyers are much more willing to make a realistic offer - including a higher than customary amount for earnest money -  that is likely to get accepted. Sometimes, if they do make a low offer, I have facts & figures in hand to back up their offer. More often than not, these are accepted - countered maybe only slightly higher, as opposed to a ridiculously high counter.

Mar 20, 2012 08:13 PM #117
Rainmaker
281,342
Steven Pahl
Keller Williams Tampa Properties - Tampa, FL
Real Estate Consultant Tampa, FL 813-319-6423

Sometimes the "highest and best" offer disappoints sellers because the listing is ridiculously over market, whether a "normal" sale with equity or as a short sale.

Mar 26, 2012 07:41 PM #118
Rainmaker
130,634
Matt Robinson
Professional Investors Guild - Pensacola, FL
www.professionalinvestorsguild.com

No doubt, terms are oftentimes just as important, if not more important...than price.  Everything has to be considered in an offer, and I'm with you...reasonable terms make things so much smoother. :-)

Jan 28, 2013 10:30 AM #119
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Rainmaker
1,424,770

Sally K. & David L. Hanson

WI Realtors - Luxury - Short Sale - CDPE, REDS
For All Things Wisconsin Real Estate...Call the Hansons
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