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  

close

Re-Bloggged 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
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the airplane to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
Home Buying
Tags:
hansonrealestatenet
highest and best
buying a home

Comments 119 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the umbrella to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
62,603
Adell Forbes (Realtor)
Sell, Buy, Rent Atlanta Homes
PEMCO Realty

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

 

March 15, 2012 04:37 PM
Rainer
4,933
Dick Piehl
IMB Bank

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".

March 15, 2012 05:06 PM
Rainmaker
1,341,059
Sally K. & David L. Hanson
WI Realtors - Luxury - Short Sale - CDPE, REDS
Keller Williams 414-525-0563

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.

March 15, 2012 05:49 PM
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.

March 15, 2012 06:13 PM
Rainmaker
1,341,059
Sally K. & David L. Hanson
WI Realtors - Luxury - Short Sale - CDPE, REDS
Keller Williams 414-525-0563

Thank you anonymous....!

March 15, 2012 06:20 PM
Rainmaker
160,972
Karen Steed
Associate Broker Haralson Realty licensed in GA and AL
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton

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

March 15, 2012 08:18 PM
Rainer
135,622
EMILIA B COOPER REALTORĀ® . SFR . NCHSE
Short Sales, Foreclosure & Bank Owned Real Estate
CHARLES RUTENBERG REALTY

Great post Sally and David!!

March 15, 2012 08:28 PM
Rainmaker
1,341,059
Sally K. & David L. Hanson
WI Realtors - Luxury - Short Sale - CDPE, REDS
Keller Williams 414-525-0563

Closing cost begging begs neither the highest or the best.

March 15, 2012 08:31 PM
Rainmaker
317,661
Jon Quist
Tucson's BUYERS ONLY Realtor since 1996
LONG REALTY

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

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

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.

March 15, 2012 09:09 PM
Rainer
58,442
Eugene Lew
RE/MAX equity group

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.

March 15, 2012 11:12 PM
Rainmaker
267,176
Paddy Deighan JD PhD
Paddy Deighan J.D. Ph.D
Aston McLaren Inc

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

March 16, 2012 12:07 AM
Rainer
63,337
Lorelei Bennasar
PA
Redfin

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

March 16, 2012 09:43 AM
Rainmaker
132,587
Liane Thomas - Corona & Riverside Real Estate
Bringing you Home!
The Jet Team, Keller Williams Realty, Corona Real Estate

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.

March 16, 2012 01:35 PM
Rainmaker
660,181
Pacita Dimacali
Alameda/Contra Costa Counties CA
Alain Pinel

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

March 16, 2012 08:47 PM
Rainmaker
1,341,059
Sally K. & David L. Hanson
WI Realtors - Luxury - Short Sale - CDPE, REDS
Keller Williams 414-525-0563

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

March 17, 2012 03:39 AM
Rainmaker
193,827
Sandy McAlpine
Search Lake Norman Homes For Sale - Lake Norman NC
McAlpine Properties

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

March 18, 2012 01:02 PM
Rainer
17,362
Mark Hoggard
Churchill-Brown & Associates - Nichols Hills

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.

March 20, 2012 08:13 PM
Rainmaker
275,187
Steven Pahl
Real Estate Consultant Tampa, FL 813-319-6423
Keller Williams Tampa Properties

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.

March 26, 2012 07:41 PM
Rainmaker
125,433
Matt Robinson
Pensacola Real Estate (850) 292-4000
ERA Emerald Coast Realty

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. :-)

January 28, 2013 10:30 AM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the music-note to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
1,341,059

Sally K. & David L. Hanson

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

Accessibility option: listen to a question and answer it!

To submit the form,
drag the cat to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information