Profile picture for rflow

Best and Final Offer?

    I've submitted an offer on an REO and the bank has come back and asked for a best and final offer. Does this automatically mean I wasn't the highest bid? What really does it all entail and mean?
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March 18 2009 - US
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Profile picture for sunnyview
I believe that it usually means that there was at least one more offer, but you won't know that for sure unless you ask the bank. In short, the bank wants you to give them your best shot without telling you what the other offers might be hoping that you'll bid higher not knowing what the others offer. My advice is not to bid over what you want to pay just to get the house. Stick to your plan and don't offer too much just because you can't see the other offers behind the bank curtain.
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March 18 2009
Profile picture for theflanigans
This happened to us twice. The first time we just walked away and actually retracted our first offer and found out the other "offer" was a very low ball bid 50k less than asking and was not accepted by the bank. (It is still on the market.) The second time, we really wanted the house and put in what we had predetermined our limit would be (5k less than asking). Unfortunately, this time we lost the house to a higher bid. It seems like it is gamble, trust your gut.
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March 18 2009
Whatever the situation, make the best offer you can give (assuming your first offer had some wiggle room for negotiation) and not a penny more.

Don't have the biggest case of buyers remorse you will ever encounter by paying too much for this house. Look to the left, look to the right, there are plenty  more houses to buy.

The greatest thing about Zillow is you can learn from the mistakes of others and it doesn't cost you one thin dime.

Good luck.
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March 18 2009
This means that they had multiple offers.  The highest offer doesn't always get the property.  The cash offer always gets it even if it is less money.  Bank accepted a cash offer for 40k less over conventional financing.
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March 18 2009
This seems to be fairly normal protocol when multiple offers are received on a property. It's a way to give everyone involved a fair chance to submit their best offer, but it also creates a "bidding situation". Keep in mind that the listing agent is working for the seller. Their job is to obtain the highest possible price for the property.

This is when having your own buyers agent is so important. Prior to making an offer on any property, have your agent research recent comparable property sales so you'll have a good idea of the current market. Then they can advise you on a strategy of how to make an educated offer on the property. If a best and final offer situation arises, you'll know where to set your limits. 

Hope this helps, 
Walt  
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March 18 2009
Profile picture for space_acer

If they had a better offer wont they simple take it, given demand has fallen down to prior decade lows....
Of course you get a wink and a smile, but they wont give you an transparency to actual "other" bids.  

Would you trust without verification, and taken to the cleaners?

It wasnt just Wall Street and Risky Mortgages that created the bubble!

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March 18 2009
 
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