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Best & Final, sort of

By Claude Labbe

Real Estate Agent with RLAH / @properties DC / MD / VA

May 05, 2011 11:21 AM

While we are having a brisk market here in the metro Washington, DC area, I think this question still applies to everyone on the board.

I'm working with two first time buyers, and in the past 10-12 days, this has happenned twice. I feel we're losing credibiity as realtors, though I can see where this works for the sellers, and so, the agents are doing their jobs.

In each case, we made a good offer, and being aware their may be other offers, we went higher and did a "Best & Final clause". In one case, there were 2 offers, in the other, there were 6 offers.

In each case, we were not the highest offer, but we had a great offer (cash... quick close, etc). In each case, the seller came back to us and said "Okay, but how about you spend another $10k or so, and we'll ratify".

Is this a new angle that listing agents are using, essentially saying "We don't really believe your best & final is really either". Let's agree, it's certainly making my buyers wonder "for real?".

_Claude

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1~Judi Barrett

Integrity Real Estate Services 116 SE AVE N, Idabel, OK 74745 - Idabel, OK

BS Ed, Integrity Real Estate Services -IDABEL OK

That is amazing.. It would make you wonder. But I have had buyers make their best and final and then get irritated when they lost out. They said it wasn't REALLY their best and final.. HMMM

May 15, 2011 02:04 AM

Pacita Dimacali

Alain Pinel - Oakland, CA

Alameda/Contra Costa Counties CA

Not an angle....but remember that listing agents work for the sellers. They want the best and highest offer they can get. They can counter your offer...you can always stand your ground...or play along and say that in good faith, you'll raise your offer another $1,000 but not $10,000. Or you can even go half-way. Putting things in perspective, just how much more will that $10,000 cost in terms of down payment.

For example, if your offer is $200,000 with a 20% down payment --- that comes to $40,000 down payment.

If your offer is raised to $210,000, again with a 20% down payment -- that comes to $42,000 down payment or literally only $2,000 more.

The monthly payment couldn't be that much different.

So will your buyer risk losing a good property over this amount?

Jun 12, 2011 05:18 PM

Claude Labbe

RLAH / @properties - Washington, DC

Realty for Your Busy Life

Pacita, I understand, and yes, listing agent is working for his/her clients.

For myself, it sure makes me much more cautious when I come across that agent's next listing. Now, I'll caution my buyers suggesting that this listing agent may counter b&f.

We can all work ourselves into a whirlwind with strategy.

Jun 12, 2011 05:45 PM

Connie Harvey

Pilkerton Realtors - Brentwood, TN

Realtor - Nashville TN Real Estate

Claude, I think it's amazing that you're one of the few people talking about multible offers instead of the dreaded "no Showings". I've had Judi's buyer too where they don't get that it has to be the BEST.

Jun 26, 2011 05:28 AM

Hi Connie,

Didn't I recently hear that Nashville is one of the best "markets", based on affordability? That has to help you all.

Even with the crazy week on Wall Street, and with the summer when things slow down just a bit.

As if the real estate market isn't crazy, so there's no need to point fingers to anyone else.

So, let's count our blessings and keep working.

Aug 12, 2011 04:05 PM

Best & Final, sort of

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