Best Offer Does Not Mean Highest Offer

By
Real Estate Agent with Keller Williams Realty Louisville East (502) 664-7827

Best offer does not mean highest offer or first offer received.

Sometimes likelihood of closing is more important than price.

Sometimes speed of closing is more important than price.

An all cash offer is more likely to close.

An "as-is" offer is more likely to close.

Many factors can make a lower offer more favorable than a higher offer.

Is it the listing agent's responsibility to conduct a multiple offer scenario?

Some buyers get upset or too stressed to participate in a bidding war. A bidding war may drive the best offer away for good, thereby driving away the offer the seller was content with or the offer the seller really wanted to accept.

There are many variables. The reluctance of the seller or the listing agent to conduct a multiple offer scenario is not necessarily a sign of laziness or irresponsibility. On the contrary, it may be a sign of an astute Realtor who knows exactly how to deliver the results the seller is wishing for.

 

Posted by

 

 

Dave Halpern, Realtor

The Dave Halpern Real Estate Group

Keller Williams Realty Louisville East

Website David.DavidHalpernRealtor.com

(502) 664-7827

 

 

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Rainmaker
156,354
Carolyn Kolba
Serving Mentor, and all of Lake County, Ohio - Mentor, OH
Keller Williams Realty- Mentor, Ohio

It is often a little tricky trying to get this point across to sellers.  The dollar amount of the offer is NOT the totality of the offer.  The other parts... conditions, etc, can be very crucial.

Apr 16, 2011 02:32 PM #1
Rainmaker
160,778
Retired Notworking
Tallahassee, FL

Agreed, there are many factors that go into making a strong offer and you've hit most of them.

Apr 16, 2011 02:39 PM #2
Ambassador
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Anna Banana Kruchten CRS CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

 Dave - Most of our sellers in our market understand the value of cash offers - that may be less than another other but have a 99% probablity of closing, quickly.  Excellent and to the point post!

Featured in BananaTude

Apr 16, 2011 03:15 PM #3
Rainmaker
1,555,191
Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

Dave,

You raise some good points. The deal that won't close will often have the highest price.

Brian 

Apr 16, 2011 04:26 PM #4
Ambassador
712,569
Karen Crowson
Coldwell Banker Residential Brokerage - Rancho Bernardo, CA
Your Agent for Change

And some people just like to say that they beat someone else for a home. I had a agent willing to write on offer considerably over asking. I figured they were bluffing, as it probably wouldn't appriase at the price.  When we countered them with no appraisal contingency, they bowed out.  But more telling was what he gabbed about. His client had already offered and pulled out of two other purchases. No thanks!

Apr 16, 2011 08:03 PM #5
Rainer
148,117
Coleen DeGroff
Coldwell Banker M.M. Parrish Realtors - Gainesville, FL
Haile Plantation Real Estate - Gainesville FL

Dave - Cash is KING. Being able to close a deal should take precedence (in my mind anyway) over hitting some sort of "magic number" with an offer fraught with contingencies. Great post!

Apr 17, 2011 03:21 PM #6
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Bill & Cyndi Daves
Hiawassee, Young Harris, Blairsville, Hayesville, Murphy and Beyond! - Hiawassee, GA
TeamDAVES - Your REALTORS In the GA/NC Mountains!

Dave - great post and so true.  When we present offers to the sellers we go over ALL the details and leave the offered PRICE for last just to make the point that $$ isn't the biggest factor!

Apr 18, 2011 12:13 AM #7
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