When highest and best goes wrong

If you are a home buyer you know the drill. House goes on the market and there is a deadline for making an offer. The listing agent will call for highest and best offer by a certain date and time.

Sometimes the time passes and the house is still on the market. Sometimes multiple offers are made by the deadline. Other times buyers were not interested enough to rush through the process and compete with other buyers so they did nothing.

Some listings have highest and best offer deadline in MLS and the dates are from weeks ago making me wonder what happened.

Home may buyers end up bidding against themselves as they are told that there might be multiple offers or that another offer is coming in. I strongly discourage buyers from raising the offer amount unless they are sure there are other offers.

If you are selling a home it is probably best if you don’t set a deadline for offers unless you already have an offer. Sometimes buyers think there is something wrong with the house if it is on the market after the call for highest and best.

Every year I have to explain to a new crop of buyers that they won’t be told what other buyers have offered and that they are more or less rolling the dice. In the end, I want my clients to be happy with their purchase. I don’t want them to feel like they were taken to the cleaners or like they paid to much.

When representing the seller I want to make sure that the offer that my clients want to accept will result in a closed sale.

Home buying isn’t easy these days and sometimes home selling isn’t as easy as it looks. I have seen houses that got multiple offers end up back on the market after the financing fell through or after the inspection. When buyers are paying top dollar for a home they don’t expect to have to spend a lot of money on repairs.

The more the buyer offers on a home as compared to the asking price the pickier he/she/they are going to be about the condition of the place.

Sometimes I chuckle when an overpriced house hits the market on a Friday with a call for highest and best offers by Monday.

There are still agents out there and real estate companies that believe they need to create a sense of urgency to sell a home quickly. We are in a buyers market which by its very nature means there is a high interest among buyers and a sense of urgency.

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