Best and highest, not sure what to do.

[Matt Dabek]

I've put an offer on multifamily house couple days ago. Bank owned house. Great price - no doubt. I went few k over asking price. They came back to me asking best and highest. From your experience, how much more should I go? How much more people are usually raising?

[Michael Noto]

@Matt Dabek Been in this situation dozens of times for clients and my personal investing here in Connecticut in what is probably the same market you operate in. Here are some things I have learned in highest and best situations. 

1. If it is a property that checks the boxes for you and is in your wheelhouse offer the max your mumbers are telling you to offer. Do not leave anything on the table.

2. When you come up with that number, ask yourself "if the property sells for $1k higher than this will I be ok with it because I put my best foot forward?" If the answer is yes then offer that amount, if the answer is no than raise your offer. 

3. Take the emotion out of it completely and only offer the max of what your numbers are telling you. 

4. Do not look into at all or try to project what others will offer. It is a waste of time because you are worrying about something you cannot control. Making sure your budget is correct and you are accounting for costs accurately so you can make the best offer is a better use of your time  

5. Make sure the other aspects of your offer are as aggressive as possible. Deposit amounts, closing timeframes, inspection contingencies or lack thereof, etc could all be things that break a tie if highest bids are similar. 

6. If you are purchasing with a hard money lender and not with all cash it does not hurt to use a reputable HML in the area that closes deals. Banks and certainly listing agents (if they have a say) know the lenders in certain markets that close the majority of the deals they issue pre quals for. Again, this is the type of thing that could not matter at all or break a tie.

I could go on and on about this but those are the basics I follow and advise my clients to follow when in a highest and best situation. Best of luck. Let's us know how it turns out.