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\n <\/div>\n \n Sell Faster and for More Money With a Top Agent<\/h3>\n
HomeLight data shows that the top 5% of real estate agents sell homes faster and for up to 10% more than average agents. Try HomeLight\u2019s free Agent Match tool to consult with the highest-performing agents in your market.<\/p>\n \n
How does the \u201chighest and best\u201d tactic work?<\/h2>\n
In a multiple offer scenario, a seller may choose to employ the \u201chighest and best\u201d offer tactic, rather than wade through each offer in detail and negotiate with multiple buyers<\/a> at the same time. In effect, you ask buyers to bring their shiniest offers to you by a specific deadline \u2014 such as \u201cFriday at 5 p.m.\u201d This type of message alerts buyers that their offer is not<\/i> your only option. It also compels them to put their best foot forward and hold nothing back.<\/p>\n You can break \u201chighest\u201d and \u201cbest\u201d into two distinct parts. When you instruct buyers to bring their highest offer, it encourages them to raise their price (very important and probably what you\u2019re most focused on). The \u201cbest\u201d component refers to all the other terms included in a contract that can be tweaked to sweeten the deal \u2014 such as waived contingencies<\/a>, putting down more cash upfront<\/a>, or offering a more flexible closing date<\/a>.<\/p>\n The \u201chighest, best, and final\u201d<\/b> strategy \u2014 sometimes simply called \u201cbest and final<\/a>\u201d \u2014 means that each buyer who has submitted an offer will have one shot to put forward their most attractive price and terms. From there, the seller will select an offer outright, rather than start further rounds of negotiation with each individual buyer.<\/p>\n \u201cHighest, best, and NOT final,\u201d<\/b> means that once a buyer has been outbid, the listing agent notifies each buyer, giving them a new deadline to meet the current offer, or pull their offer altogether. This can go on for a number of rounds until there\u2019s one buyer left, or the seller accepts an offer.<\/p>\n Philip Unger<\/a>, a top-selling real estate agent in North Haven, Connecticut<\/a>, usually recommends \u201chighest, best, and final\u201d to his seller clients. This can shorten the negotiation process, and might even push buyers to make a higher offer under the pressure of only getting one chance.<\/p>\n \u201cAs a seller\u2019s agent, if I have multiple offers, we\u2019ll tell buyers, \u2018We want your highest and best offer by Tuesday at 5 p.m.\u2019 and that\u2019s it,\u201d says Unger.<\/p>\n But you should talk over each strategy with your agent and determine what you\u2019d prefer.<\/p>\n In a multiple offer scenario, asking buyers for their highest and best can pay off for the seller in several ways:<\/p>\n Under the right circumstances, asking for a buyer\u2019s highest and best will make the sales process easier, and might even mean selling your house for more. However, there are some instances where the tactic won\u2019t fly.<\/p>\n Remember, in a highest and best scenario you\u2019re asking the buyer for both highest <\/i>price and best <\/i>terms.<\/p>\n Unger\u2019s red hot market, he recently sold a home that received 18 offers on it. Offers were coming in so quickly that at one point, \u201cit seemed that I had more offers than showings,\u201d he recalls, \u201cwhich just felt insane. It was almost more than any of us could handle.\u201d<\/p>\n To combat the confusion, Unger entered each offer into a spreadsheet<\/a> so he could clearly outline the terms and finances behind each buyer\u2019s interpretation of \u201cbest and highest.\u201d<\/p>\n With everything from 50% down to closing cost assistance, the offers ran the gamut. While some sellers might get caught up on the highest offer, prioritizing other elements can drastically change the trajectory of the sale, for better or worse.<\/p>\n Say you ask your buyers for their highest and best offer on your home, initially listed for $250,000 and receive these terms:<\/p>\n So, which one is the best offer?<\/p>\n Well, it depends on your goals as a seller.<\/p>\n Do you want to be out of the house sooner? A short closing window could be ideal. On the other hand, an earnest money deposit can show that a buyer is serious, even if they have a lower offer. Finally, getting above asking price means more cash at closing, but contingencies can throw a wrench in the plan<\/a>.<\/p>\n Ultimately, Unger urges his sellers not to get too mixed up in the price tag, \u201cthe goal is to get to the closing table, which offer is going to be the strongest that\u2019s going to get you there the fastest? What will get you the most money as fast as you can?\u201d<\/p>\n\u2018Highest and best\u2019 vs. \u2018Highest, best, and final\u2019<\/h2>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/09\/multiple-offers-highest-and-best-calendar-666x381.png\")
<\/a>Why should a seller use the \u201chighest and best\u201d tactic?<\/h2>\n
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\n<\/b>Most sellers would prefer to sell sooner than later. If a seller chooses to ask for the highest, best, and final offers from multiple buyers, they won\u2019t have to deal with the back and forth of negotiating. Each round of offer and counteroffer happens over a 24-48 hour window, adding delays to your timeline.<\/li>\n
\n<\/b>Asking for a highest and best offer might push the buyer closer to your target sales price, because it shows there\u2019s real interest in the property. In negotiations, buyers won’t typically start with their highest offer<\/a> with the goal of leaving a little wiggle room. But asking for the \u201cbest\u201d offer yields more favorable terms for the seller in a more immediate fashion.<\/li>\n<\/ul>\nIs there a time to avoid \u2018highest and best\u2019?<\/h2>\n
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\n<\/b>In Unger\u2019s market, he\u2019s seen some listings ask for the highest and best on the very first day the home is listed. While a seller may legitimately be expecting a multiple offer scenario, that language can scare away potential buyers, and it comes off a little arrogant. \u201cI have to laugh, because two weeks later, the properties are often still on the market,\u201d Unger says.<\/li>\n
\nEven in a hot real estate market, sellers need to have realistic expectations as to what their property will sell for. Asking for highest and best when offers are already on the high end of your property\u2019s estimated value could lead to the property appraising under contract value<\/a> \u2014\u00a0which means an even longer negotiation or a deal falling through. Remember, the offer isn\u2019t everything; you still need to make it to the closing to seal the deal.<\/li>\n<\/ul>\n![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/09\/multiple-offers-highest-and-best-think-666x381.png\")
<\/a>Picking the right offer: It\u2019s not always just the highest<\/h2>\n
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\n<\/b>$260,000 offer with financing and inspection contingency, 60-day close.<\/li>\n
\n<\/b>$248,000 offer with all contingencies waived, 30-day close.<\/li>\n
\n<\/b>$250,000 offer with financing and inspection contingency, largest earnest money deposit<\/a>, 60-day close.<\/li>\n<\/ul>\n