Special offer

Real Estate Foreclosure Term Highest and Best

By
Real Estate Agent with Sun Rise Real Estate

During the past few years I have represented several buyers who were able to purchase foreclosed real estate in the North Myrtle Beach, South Carolina area.  When multiple offers were involved the listing agent's made the request of "highest and best".  That was an expected response to the multiple offer situation so I had informed by clients of the possibility.

Recently I represented a buyer who, as required to purchase a short sale or foreclosure, became pre-qualified for a mortgage.  Based on information given by the buyer I knew that real estate within her price point would probably be a distressed property.  Since I am certified through the NAR as a Short Sale and Foreclosure Resource (SFR) I had also registered as an agent with Fannie Mae and Freddie Mac and frequently search their sites for properties in distress.  I found one for my client that was only a couple of thousand above her price point but it had been on the market long enough to justify an offer if my client wanted to purchase. 

My client met the criteria for a First-Time Home Buyer tax credit and the offer was made with ample time for a response from Fannie Mae on their foreclosed home.  After several weeks I was notified to present my client's "highest and best" within 12 hours.  We responded immediately but days went by with no response from the agent for Fannie Mae.  Then we received a verbal counter offer to our "highest and best".  My client was already stretching her financing to the max but she made a counter offer back to Fannie Mae.  Several weeks passed and the deadline for a ratified contract to qualify for the first-time home buyer tax credit was only two days away when I receive a notice from the Fannie Mae listing agent to make a "highest and best" offer again with no response to our counter offer.  We responded immediately and on April 29, 2010 at 5:00 PM I received notice that my client's offer was rejected. 

I tend to think that Fannie Mae or their listing agent was using the deadline for the first-time buyer tax credit as a way to force my client to make a higher offer even though they clearly knew she could not afford anything above what she had already offered.

To search for Fannie Mae foreclosed property visit Myrtle Beach Real Estate - Foreclosures.

Comments (2)

Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

very good post!   I also had to have several of my clients go to contract in a big rush before the deadline, so they could qualify....

May 04, 2010 04:46 AM
Terry Adams
Condolux Real Estate & Vacation Rentals - Myrtle Beach, SC

That is quite scandalous!  I've never thought about the sellers using that as a leverage chip in order to maximize their return.  Great article.  Makes you always think about the positive and negative sides of incentives.

Jun 29, 2010 06:39 AM