High Offer, Countered With “Highest and Best”

[Mark Abbate]

Hello All,

I have been in the market for about 2 months looking at places, putting offers in an constantly getting outbid. I am a very patient person so this doesn’t bother me in the slightest. I recently found a place that was listed at 465k, I loved the area, it had all the amenities I’m looking for and then some. So, I put in an offer for 560k (pretty ridiculous I know, but I don’t think it will appraise that high) and now I’m being countered for a highest and best offer.

For reference an identical unit closed a week or so ago for 490k but was listed that it needs a little work. I also have an appraisal contingency in place for 10k over appraisal value. By no means am I an appraisal expert or anywhere close to one but I’d be hard pressed to see this place get appraised for over 540k if that.

I’ve decided to stand by my 560k offer cause quite frankly I think it’s a little absurd to go higher but I do love the property. Do you think the highest and best is just to squeeze a little more out of me even though that was essentially my highest and best?

Thank you!

[Will Fraser]

Hey @Mark Abbate, I used to ALWAYS think that Highest and Best was a play to squeeze more out of the buyers until our local market started to heat up.  At times that IS the agent or seller's intention, but one of the other affects of a call for Best and Highest offers is that when multiple offers are received (especially in the first few days on market) the listing agent will look at the number of showings scheduled on the home or the number of agents who have reached out to let them know that "an offer is coming, just need some time" and will call for Best and Highest in order to give everyone a shot at offering.

In reality B&H allows ALL offeror to go into the offer eyes wide open, aware that it is a competitive situation (duh, right?  But seriously, it makes a huge difference with some buyers).  It DOESN'T mean there is anything wrong (or right) with your offer.  Do your diligence, know your numbers, and let those numbers tell the story.