What's 'Highest & Best' & How To Make It Even Better!

Well, good afternoon everybody. My name is Chris Berger and it’s time for a Berger Point.

You know, recently over the last couple of years, and I’ll say since COVID, all of a sudden we’re hearing the highest and best offer.

What does the highest and best offer actually mean?

Well, to the seller, okay, they are looking for their best possible price that they can get.

And for the buyer, they’re now considering to put their best foot forward.

Whereas if you go back 20 years in the old days, you know, there was some negotiation that went on and there was trust built between the buyer agent and the selling agent.

So with this highest and best thing sometimes agents were sort of going blind.

So for example, a house is 500,000, it’s been on the market for 30 days the agent is now asking for highest and best because they have multiple offers.

So they might have offers of $498,000, $495,000, $505,000, $510,000, but the agent is now putting out there for all the people who have made offers to go the highest and best.

Okay. How do you do that?

Well you sit down with your agent the buyer would sit down with their agent and the house is selling for $500,000.

The buyer is now deciding they don’t want to go higher than $510,000.

Now, how can they make that offer even better?

So, aside from the offering price of 510 what can they do to make their offer more attractive?

And this is very, very important because it’s a whole package that the selling agent will look at, as well as., the homeowner who is selling the house…

A Time Frame

So my biggest asset is that when you can offer a time frame to the seller stating that okay, I will give you 60 days — after we’re in contract to close or I’ll give you 90 days after we’re in contract.

To close this makes your offer it separates it from the rest of the offers and that’s so important.

Take AS IS

Now something else you might add —- I’ll take it as is — nothing needs to change.

Again the seller is going to look at that and even though they might have gotten a few thousand higher — well because of the time frame and now my house as is and something else you can add.

Buy Their Stuff

You can add that there’s certain furniture there that you may want to buy as a buyer or you add that too.

I will give you X amount of dollars for this furniture, for your couch, for your armoire.

And again, it’s the complete package that makes a difference.

So when you see highest and best, make yourself a package to offer that the seller will really enjoy.

And that’s my point.

This week, I have the privilege of seeing James Taylor.

So he and I have sort of gotten together three times now.

This will be the third time that I get to see him.

And I’m going to Bethel Woods, otherwise known as Woodstock, which is absolutely fantastic.

So I’ll let you know how I make out next week.

Have a great day.