With the Real Estate market as competitive for buyers as it has been and continues to be, they could be asked to make their Highest and Best Offer by a specific date and time. So what does this mean?
The “Highest “is just that. It's the highest price the buyer is willing to pay. But, be wary of bids too high over the list price because if the buyer requires financing from a lender to purchase the home, the lender will require an appraisal. If it does not appraise at the amount agreed upon, either the seller will have to reduce the price to the appraised amount, or the buyer will need to make up the difference. It could also affect the down payment required for their loan. If they cannot resolve this, the agreement will terminate, resulting in a waste of precious time and money. The highest price is not always the answer.
The “Best” also includes the Offer's Terms: Contingencies, dates, and other seller requests. Contingencies are anything that could prevent the transaction from coming to fruition if it is not reached, things like financing, home inspections, sale contingencies for the buyer needing to sell their home to purchase, and other seller requests.
In this type of market, buyers with the strongest financial position have the best chance of succeeding. Some buyers waive inspections or make home inspections for informational purposes only, not making it a contingency.
To get the best outcome, the seller should look at both the price and the terms when choosing the Highest and Best Offer, the one that will most likely make it to closing with the least amount of potential issues and go the smoothest.