Highest and Best Offers: What's Not to Understand?
'Multiple Offers' is a situation we've been dealing with in the Phoenix Metro Area for sometime - in some mareket segments - not all. It's so important for agents to fully understand how to educate the buyers submiting and preparing and offer that at least has a high chance of being considered and possibly accepted by the seller - if they really want and love the home. Chris Ann Cleland has written a MUST read offer for YOU!
Highest and Best Offers: What's Not to Understand?
Reading blog posts from agents across the country, it seems that a lot of markets are experiencing conditions that strongly favor sellers. In markets like those, buyers often have difficulty getting away from the "reality" TV shows depicting home purchase negotiations. Go in low, get the seller to come down off list price and BAM--you have an accepted contract.
Seller markets don't work like that for buyers. A thought of getting a lower offer accepted, or the seller to negotiate their price down is a pipe dream. Yet, many listing agents continue to be inundated with ridiculous offers, among other offers by buyers that get the lay of the land. Successful buyers in a seller's market realize that they will be lucky to only pay list price. Most likely, they are going to have to pay more.
When a listing agent asks for a highest and best offer, it is time for a buyer to search their soul and find the offer they are willing to make and know they did their absolute best. If a buyer is called the next day to find out their offer wasn't accepted, the response should never be any of the following:
We would have gone higher in sales price.
We didn't really need closing cost help.
We could have waived the appraisal contingency.
We could have settled sooner than two months from now.
You get the idea. If you can do better, let it be known at the time when your highest and best offer is requested. My buyers will ask me what they should offer in a multiple offer situation and I always tell them the same thing, "Find the highest amount and best terms you are willing to offer. Those are the terms that if you found out someone bested you, you could walk away with no regrets because you weren't willing to go that high, go without an appraisal contingency, etc."
Paying list price or higher isn't the end of the world, especially when mortgage interest rates are so low. Remember, your monthly payment is much more influenced by interest rates than a swing of $10,000 to $20,000 in sales price.
Be ready to put your highest and best offer together if you are house hunting in a seller's market. It is the only way to really get a home.
Chris Ann Cleland, Associate Broker-Licensed in VA
2016, 2015 PWAR Top Producer
Long & Foster Real Estate, Gainesville, VA
703-402-0037, ChrisAnn@LNF.com
The opinions expressed in this post are those of Chris Ann Cleland, not those of Long & Foster Real Estate®.
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