by Phil Hoover, Real Estate Broker

Give Me Your Highest and Best Offer!

One of the many games played by listing agents with short sale listings is purposely underpricing their listing as a way to generate multiple offers.

Then, when those offers come in, they tell buyer’s agents “give me your highest and best offer!”

Problem is, highest and best often do not go together.

The highest offer may not be the best offer, for a variety of reasons, including:

  • The buyer may not have approved financing.
  • The buyer may want a longer escrow.
  • The buyer may have made offers on several properties and could withdraw their offer and close n one of the other properties.
  • The property may not appraise at the highest price.

I could go on and on, but you get the idea ~ the quality of the offer is usually more important than achieving the highest price.

The highest price is meaningless if escrow never closes.

May 22nd, 2010 Posted in Inside Real Estate Print This Post Print This Post

  1. No Responses to “Give Me Your Highest and Best Offer!”

  2. By Trey Langord on May 25, 2010

    Another great blog Phil. Always enjoy reading your stuff.
    Trey

  3. By Paul Heim on May 27, 2010

    I could not agree with you more. Great article. As you stated, you can go on and on, such as one buyer may be a cash buyer as opposed to a 100% VA loan buyer.

    Best bet for any buyers agent is to do the homework on the home, the area and the neighborhood prior to presenting an offer. Also one needs to educate the buyer and prepare him mentally for the challenges and often disappointing results of short sale buying.

  4. By Joel Anderson on May 29, 2010

    Good Stuff Phil! Lots more to consider than just the inital highest offer. Ultimately that is only step one and if it doesn’t close step one is irrelevant. I enjoy reading your Blog Phil.

Post a Comment