Go Higher on Your “Higher and Best” Offer!
Not long ago, I was at a backyard barbeque, sipping my drink and idly listening to the various conversations surrounding me. Along with the typical discussions surrounding the NFL, college football and baseball, I overheard an overwrought voice above the fray stating, “We offered full price! And, we didn’t get the house!”
Obviously, my interest was piqued! I stood up on my toes to find who owned that voice. I made my way towards her, frantically trying to place in my mind from where I knew her. By the time I got over there, I realized that it was Janice, who lives across the street from my friend. I had noticed that the sign in her yard was sporting a jaunty under contract sign on it. I had intended to congratulate her on that accomplishment sometime during the barbeque.
I took a deep breath, had another sip, and casually insinuated myself into this conversation. “Go on,” I encouraged, “Tell me what happened!”
“Oh, thank goodness,” says Janice with a relieved sigh. “You can tell me why this happened to us. Our house is sold and we have to move soon. We have been out with my agent during every spare moment and we had finally found a house we really liked. We made a full price offer on the house and you know what happened? The listing agent called our agent and told her there were already other offers on the house. Can you believe that?”
“Yes, I can believe it,” I said. “We have more buyers than sellers in the market today. That’s what we call a Seller’s Market.”
“But we offered full price!” Janice wailed.
I inquired, “Did you ask for any closing costs to be paid by the seller?”
“No,” she said. “I wanted to ask for some to be paid, but our agent suggested that we not do so. She said our offer would be stronger if we didn’t ask for that. So, we went in at full price with no closing costs. When asked, we told our agent that our offer was the highest and best we can do and we felt confident that at full price, we should be moving in there soon.”
“And the other potential buyers also had the chance to provide their highest and best offer too, right?” I asked.
“I suppose so.” Janice said. “But we offered full price!”
“Janice, I understand that you offered full price, and you didn’t ask for any closing costs or anything else out of the ordinary,” I said. “But, why didn’t you decide to offer a bit more than what they asked for the house to insure you got it?”
“What?” she asked incredulously. “You can do that?” She shook her head. “Why didn’t my agent tell me?”
I smiled knowingly and took another sip of my drink. “I don’t know Janice. Maybe that’s a good question to ask her. Good luck with your home search and congratulations for selling your house!”
I walked away, shaking my head and wishing she had used a BHGRE Metro Brokers agent.
What tips do you have for buyers like Janice to ensure they win the “Highest and Best” offer?