Best and final offer

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Best and final offer

Ralph Ace

Real Estate Agent · Chicago, IL · Member since 2020 · 43 posts · 10 votes

Many homes that I show. I get a message from listing agent saying to submit best and final by certain time.

My question is that in deed true or just a pressure to buy tactic?

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Bruce Lynn

Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes

@Ralph Ace I don't know about your market, but in my market it is the truth....and they may even sign a great offer before the deadline.

Not sure why so many buyers don't believe this, but in my area if you wait you will likely not get the property. Almost all price ranges.

I would ask your broker or other agents in your office if they can give you the showing reports for a few homes as an idea and also ask them how many offers are typical. Just to give you an idea in my market two homes I'm thinking about 1 got 75 showings in first 2 days. Not sure about how many offers, but if they got 75 showings...it will sell. I showed a home on Monday where seller said he got about 50 showings on Sat/Sun and had a stack of offers...maybe 10-12. Went to a home this morning at 10am and while waiting for the client 3 different groups of people went inside. Pretty common someone inside when I show up and someone waiting on me to leave.

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Bob Okenwa
Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
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@Ralph Ace
I can't speak to your market, but it is the truth in my market. Homes are selling for over ask and agents are holding auction-like events by giving buyers a short window (3-7 days) to view the home and make an offer. They ask for highest and best to drive up the price and also avoid counteroffers.
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Bruce Lynn
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
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@Ralph Ace I don't know about your market, but in my market it is the truth....and they may even sign a great offer before the deadline.
Not sure why so many buyers don't believe this, but in my area if you wait you will likely not get the property. Almost all price ranges.
I would ask your broker or other agents in your office if they can give you the showing reports for a few homes as an idea and also ask them how many offers are typical. Just to give you an idea in my market two homes I'm thinking about 1 got 75 showings in first 2 days. Not sure about how many offers, but if they got 75 showings...it will sell. I showed a home on Monday where seller said he got about 50 showings on Sat/Sun and had a stack of offers...maybe 10-12. Went to a home this morning at 10am and while waiting for the client 3 different groups of people went inside. Pretty common someone inside when I show up and someone waiting on me to leave.
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Joshua JanusBusiness Member
Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
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@Ralph Ace in my market this is generally the truth. It is just a way for the listing agent to organize everything and incentivize offers for over asking. They can use this tactic to force everyone to bring their best true offer and I have seen it work successfully. Some select group of agents will present the deal in this way even when there is little interest, and it is up to your buying agent to work to determine the true interest in the property so you don't end up overpaying.
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Michael BlumBusiness Member
NC · Member since 2018 · 55 posts · 49 votes
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@Ralph Ace
Also true in my office. Wish inventory as sparse as it is, almost every property (if it’s priced well) has loads of showing the first couple days and usually at least 2-4 offers within 36 hours. We just put in an offer and we’re 1 of 30. When I got to show it, there were easily 30 people inside the house and about 5 outside walking the grounds. I pity the agent who has to present 30 offers. It’s not every house that does “highest & best.” It’s well over half right now though from what I see.
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Jonathan R McLaughlin
Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
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Both
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Tyler Stewart
Real Estate Agent · ME · Member since 2022 · 3 posts · 4 votes
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Also true in my market as well. I agree with all of the other posts. Inventory is moving extremely fast, and if they are saying best and final are due, that 9 times out of 10 means that there are other offers on the table.
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Dwayne Poster
Investor · Van Isle · Member since 2021 · 455 posts · 226 votes
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In my market, successful buyers aren't bidding on the home itself, but rather against potentially higher competition. Its totally bizarre.
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Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
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@Ralph Ace
If it's true it's normally documented in the MLS
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Joe S.Pro Member
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
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We’ve had the email that said something to the effect…multiple offer request triggered please make your highest and best offer. We told our Realtor we already made our highest and best an amazingly we won the bid.🤔
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Jeremy Komer
Rental Property Investor · Cincinnati, OH · Member since 2020 · 84 posts · 81 votes
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@Ralph Ace
In Cincinnati it depends, if it's priced well and the renovation was done well it's sold in a couple weeks if it's got something wrong or the renovation lacks quality to justify the price then it sits and it can sit for a month or more as the price comes down to reality, usually 10% ish.
Last year it was crazy everything sold in 2-4 days and I mean everything! No matter how bad it was it got bought!
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Tchaka Owen
Real Estate Agent · Merritt Island, FL · Member since 2017 · 986 posts · 1k+ votes
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Quote from @Ralph Ace:

Many homes that I show. I get a message from listing agent saying to submit best and final by certain time.
My question is that in deed true or just a pressure to buy tactic?
The last few years it wasn't uncommon to get a request for "best and final", however that's not the case in my area anymore. It's such a hot sellers market that buyers are going way over each other to win and that sellers are selecting from offers received. Basically, the offer you make better be the best because there won't be a round two.

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Peter TverdovBusiness Member
Developer · New Brunswick, NJ · Member since 2015 · 1k+ posts · 2k+ votes
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I posted a listing Monday at 9am. After having 8 showings by 530pm Monday and a bunch of scheduled showings the rest of this week I called for best and final Friday at 5pm.
I'm not into wasting everyones time. I don't need 25 offers and the ego stroke to sell the house. We need a handful and we are all set.
It's not a tactic (at least not in 2022) it's reality right now.
Now on the flip side I put a deal under contract in one day as the buyers agent because I would not let the listing agent off the phone until we got what we wanted. You have to fight out there, it's insane right now.
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Nate Sanow
Investor & Agent · Tulsa, OK · Member since 2016 · 1k+ posts · 1k+ votes
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It happens in my market to and I can see it as a courtesy in part, but I don’t really do it on my listings. I’ve had times where I’ve had the buyer, our offer was strong, I got this text and we didn’t raise the offer and pit offer was accepted. So while it maybe a courtesy it also for sure could be bait.
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