It’s a phrase we’re hearing a lot in upstate New York this year. With many sellers getting multiple offers on their homes, they often opt to simply ask all potential buyers to submit their highest and best offer by a stated deadline.
Highest is pretty obvious, but what’s “best”?
That’s the element that can separate two similar or equal offers. Best is what works best for the seller. It could be they want someone who can buy fast — then a cash offer is going to be the most appealing offer.
But maybe they need to find a new place, too. So someone willing to give them some extra time might win out over someone in a hurry.
All mortgages aren’t created equal, either. A local bank is usually preferred over an out of town one. A conventional mortgage with 20% down usually is a stronger offer than less down or FHA or USDA loans.
In this situation, a letter from a buyer can actually be a factor, too. A seller who has an emotional attachment to a property is going to lean toward someone who loves it, too, even if they don’t realize that’s what they’re doing.
So if you’re in a bidding war, try to get a little more information on what the seller is looking or. If you can offer that, along with a good, strong bid, you might just get a new home.