Final & Best Scenario Can Affect Houses for Sale. Those who have been paying close attention to how the houses for sale in town have been performing may have observed the results of the dreaded “multiple offer situation.” When a closing price seems to rise unexpectedly, it could be because of something called the “Notice of Best and Final.”
That notice can be issued by a listing agent as soon as more than one offer is on the table. Experienced real estate agents sometimes choose this strategy to win the best price for their client. It instructs all interested buyers to submit their “best and final offer” by a deadline (usually within 24 – 48 hours). Since no counters or escalation clauses are allowed, one blogger has aptly called it Multiple Offer Sudden Death. Here’s how it works:
• The seller’s asking price is listed at, say, $320,000.
• Buyer A is interested; bids $310,000.
• After a few rounds of negotiation, the seller and Buyer A near agreement at $316,000, when-
• Buyer B, not knowing that the seller is nearing agreement with Buyer A, submits her own bid.
• The seller initiates Notice of Best and Final, giving both parties two days to submit their last offer.
• Buyer A begrudgingly goes up to the full list price: now offers $320,000.
• Buyer B shoots all the way up to $329,000 – the offer which is accepted.
In this scenario, Buyer B not only paid $13,000 more than Buyer A was about to pay, but also paid $8,000 more than needed to beat Buyer A’s top price.
Great news for the seller, for sure — but less exciting for the buyers, since what was a great deal just becomes so-so. That’s why I advise my buyer clients to do their best to remain emotionally detached. I suggest deciding on the true value you believe the home is worth, then sticking to it, no matter what!
Having the right real estate agent means having an agent who is committed to helping you buy your new home with the highest level of expertise in your local market. This commitment level has helped Bold Real Estate Group build a remarkable track record of delivering results.
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About the Author: Millie Gil has been a successful Licensed Real Estate agent for over 25 years in Florida. Millie is Vice President of Bold Real Estate Group, a boutique agency committed to concierge personalized service for discerning buyers, sellers and renters of residential and commercial properties.
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