5 Facts to Compete with "HIGHEST AND BEST"
Highest and Best
What is that? It is the seller of a bank owned property or REO property weeding out buyers that jumped on their lower than market value list price. Technically, it is the seller asking for each buyer of a multiple offer situation to re-submit their best offer. In spring of this year I had over 50 offers on one property, so expect some competition on bank owned listings. Here are some tips to compete:
1. Cash is king! If you are financing, you cant compete.
2. Banks list properties under value to get your attention. Their intention is to get the buyer in the home, create emotional value and start a bidding blood bath that will raise the offer price above market value. On occasion, I have seen the highest bidder outbid themselves.
3. Raising the offer is not the strongest offer. If financed, an appraisal (especially with the new appraisal system) will squash your high offer. Seller's know this and will not always take the highest bid. I like to call it "STRONGEST AND BEST" offer. There are many ways to make your offer stand out to the seller without raising the offer price.
4. Make sure your offer is complete! Have your agent follow the list agents MLS or verbal instructions when submitting your offer. I love to work with an agent that has all contracts, addendum's and supporting documentation (i.e copy of check, proof of funds, LLC docs, etc) put in a nice tidy package in one email.
5.Get your comparables on the property! Don't get attached. There will be other properties if you get outbid. Let someone else overpay. Good Luck!
For a immediate list of bank owned properties, Danny at (650) 400-7670 or email at firstname.lastname@example.org.