This past week I submitted written offers for 2 different buyers on REO properties and was told by the listing agents that they received multiple offers. They then asked for my buyers "highest and best".
When this happens, my buyers always ask if I think there are truly multiple offers or just a game the banks are playing. I sincerely believe the listing agents are being honest, but it's hard for buyers not to be skeptical.
I advise my buyers to submit what they are willing to pay, and not get emotionally attached. It's a numbers game for them anyway.
When my buyers get their offer accepted in the "highest and best" situation, they all want to know what the other bids were and I don't blame them.
When I started in real estate I was investor and the "highest and best" situation is why I became interested in auctions. I much prefer to be in an open competitive situation where everyone can see the other bids.
I know my buyers would ALL prefer the auction format for these situations and I believe it would also help the banks get the best price.
Things are heading that way, it's just a matter of time.
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