The language used when buying a home can be confusing, creating potential for you to make mistakes simply because you misunderstood what was being asked.
As an experienced agent in your area, I believe clear communication is essential for buyers when they’re about to make one of their biggest financial decisions.
No matter what pressure is being applied, I’ll always ensure you clearly understand the situation every step of the way.
Two of the most confusing phrases in real estate are designed to put buyers on the spot: a request for offers that are either “highest and best” or “best and final”.
You’d be totally excused for not knowing the difference.
Highest and Best
This phrase is used when a seller wants to create tension between prospective buyers. They’re seeking a firm offer and the minimum terms that would be conditional on any deal.
In essence, buyers are being pushed into accepting the property, with no room to discuss the cost of any remediation work to fix issues, such as rusting gutters, faulty electrics or ancient plumbing.
Best and Final
The seller makes this call when they’re done negotiating and want to strike a deal. They’re not in the mood to stretch out the deal or play folks off against each other. Basically, they’re asking everyone to give it their best shot, and they’ll make a decision.
With the market still powering ahead with price gains of more than 30% across America during the past two years, it’s not unusual to see a bidding war between prospective buyers.
When representing buyers, an agent needs to shield their clients from the pressure of this scenario. A buyer needs a clear head, good advice and an agent whose negotiation skills are A1.
As a buyer, you should ask your buyer’s agent to find out what it will take to get the deal done. Sometimes, price is not the only factor. Some vendors want to move quickly because they’ve already bought a new home.
Others want to stick around so they can begin their property search. If you’re prepared to accept a rent-back deal with the seller, you’d be in the box seat of any deal. The lesson is to ensure your agent knows what motivates the seller.
If I can help you find your next dream home, and sell your current property, please do not hesitate to contact me. We can discuss great marketing strategies to maximize the value of your current home and look at exciting options for the future.