111. Highest and Best

What’s your highest and best offer?

This is a questions we often hear in real estate 

What do most people do? Go back, crunch the numbers and give their highest and best offer. 

Makes sense , right? 

It depends – because ‘best’ is subjective. 

Best could mean the highest offer but with a few requests 

Or it could mean the lowest offer but no requests

And highest doesn’t necessarily mean the most

Because someone could put down a 40% refundable deposit 

While someone else could put down a 10% non refundable deposit. 

This situation happens all the time when making offers on property. 

And it happened to us the other day. 

We submitted an offer on this beautifully located property.

We wrote a beautiful letter, put a 15,000$ non refundable deposit down, no contingencies or inspections, and we shot low by about 25k of our max offer. 

Turns out another offer came in with a higher offer, 40% refundable deposit and a mortgage contingency.

How did I find this out? Instead of crunching the numbers and raising our offer to another 25k (with the same terms) I called the realtor to see what’s up.

After the conversation, a few nuggets got dropped. 

We found out what all the other offers were 

We found out that our current offer is already most likely to get accepted 

So instead hustling back and writing our highest and best offer 

We called the realtor, essentially finding out what their highest and best offer was…

The sellers picked our offer. 

Highest and best doesn’t always mean highest and best.

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