When you have multiple buyers, how do you handle a buyer who matches the highest buyer's price (or beats it by a little bit)?
For example: buyer A offers $90k, buyer B offers $100k. Buyer A immediately offers $102k.
Do you ask for a best and final from both? Or give buyer B a chance to match/beat?
Just wondering how others play this game
In Wisconsin, I would ask for highest and best from both if all else is equal. You run the risk of buyers dropping out due to the buyers not wanting to compete. If I have more than one offer, I also look at other features of the offers. One offer with conventional financing vs FHA, earnest money of $2,000 vs $500, no inspection contingency period, might win over a higher priced offer.
How do they know the price to match?
they don't that is the point They assume that they have similar offers and they submit their final and best due at a certain time and date .They might increase price, or raise down payment or lower inspection time etc
I'm not an agent yet but I'd assume that the buyer using the best financing (Cash > conventional > FHA) or the highest earnest money deposit would be the stronger candidate.
Joan broke it down well. Once you look at all the terms of the competing offers and if you consider them to be comparable I would ask for best and final. I would shy away from excessive back and forth, if after 2 or 3 offers per buyer neither has differentiated themselves, I'd say it is time for best and final.
Ask for highest and best!!!
And, a little secret for the buyer who really wants the house... you could do something like this.... "Buyer offers $5,000 above other buyer's offer up to $110,000" or however high the buyer wants to go.
If the seller accepts, be sure it's spelled out you get to see the other offer on the property to make sure it's real (of course, the names/personal info can be crossed out).
Just check with your local rules to make sure you can do it. And, check with your broker/lawyer on the wording. I'm not a lawyer so don't take this, or the wording, as legal advice.
@David Hunter I had my broker in Mass advise against letter buyers use this tactic previously, although not saying it was illegal. It puts the selling agent in a tough spot and I'm not sure you can make them show you the other offers.
No problems here in Ohio.
How would it put the selling agent in a tough spot, Chris?
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