highest and best offer This is a topic that many people are looking for. star-trek-voyager.net is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, star-trek-voyager.net would like to introduce to you How to Win a Highest and Best Situation When Multiple Offers are Present. Following along are instructions in the video below:
“Mark ferguson with invest four more welcome to another real estate investing video today. I i want to talk about submitting an offer in a highly competitive market when in and best might be present. Multiple offers are present. How do you get a property is it worth it going after a property in that.
Environment so before we get started of course check out investfourmorecom. I think i m over 400 free articles. Tons of great resources. Got my cash flow.
Calculators cash. On cash. Calculators. My forums.
My podcast lots of cool stuff going on there. So as you can see i got some pretty sweet new bookshelves. But when you re doing a highest and best offer so many people get scared off and they don t even want to submit any offer at all i mean i think that is probably the biggest mistake someone can make i m an reo agent. I m a hud listing broker that means i list foreclosures for banks and the government and i m also an investor myself with my flips with my rental properties so i m involved in highest and best a lot and i see so many buyers when they see highest and best.
So they get asked for highest and best or they see there s multiple offers like oh. I don t want to get in a bidding war. I m just not even gonna make an offer. I m not even gonna try why why would you not try to make an offer what s the worst thing can happen.
It doesn t get accepted so you re in the exact same boat you are as not trying. But there s a chance your offer could get accepted then you get the house you want or the investment property. You want the personal residence. You want i have gotten many houses.
When i was in a highest and best situation do not shy away from it do not be scared of it embrace it take advantage of it if there are multiple offers present on a house you re trying to buy that means. It s a good deal. Other people are interested in it and you want to probably buy that house you know depending on your situation. What you re looking to get it for if nobody wants houses you re trying to buy then maybe that should tell you something you re looking at the wrong properties.
So obviously in an ideal world to be able to buy whatever house you want without any competition and the seller would always accept your offer. But that just doesn t happen in reality. You re going to have situations..
Where there will be more than one offer the seller will ask for your highest and best offer you ll have to submit it and see what happens so i m gonna walk through first exactly what happens in a typical highest and best. I think the bank s kind of brought about the highest and best multiple offer situation they were you know going against a situation. Where they re getting multiple offers on their foreclosures. Because they re usually priced well.
And they had to come up with a way that was fair to everybody they did not create highest and best to try and drive up prices and screw over the public. They actually did it to try and be fair which i know many people don t believe. But it is more true than not and the reason they did that is because they get one offer and maybe they re reviewing it and then they get another offer they re like well. How do we handle this situation.
Where all your viewing. This offer. We don t want to just counter the first offer or not counter the second you can t really counter two offers at once because what if they both accept so they came up with this idea of highest and best where they notify every party. So when they got more than one offer every party is notified hey we ve got multiple offers everyone is officially notified.
We re gonna ask for your highest and best offer. What that means is you figure out what the best offer you can make is you submit it to us and we will choose the best offer or maybe you will pass on all the offers. If they re not that good or there s a chance we could counter the highest offer if it s not quite where we want to be. But if you give us our best offer that gives you the best chance of negotiating with this or getting it accepted now having the best offer does not always mean the highest price.
Sometimes that means having a cash offer. Sometimes that means having no inspection. Sometimes that means having no appraisal conditions. There s many different things that can be advantageous to the seller.
When there are something. But don t get scared away just because they asked for highest and best. I have even seen buyers who submitted an offer we got another offer or they were the second offer the bank or even a traditional seller. Many traditional sellers do highest and best now to said hey we ve got multiple offers.
We re gonna ask for highest and best please give us your best offer the buyers say nope. I m rescinding my offer. I don t want you to even consider it i m done. Why why would you ever do that what s the point.
I just leave your offer there if you don t want to change it fine don t change it leave it how it is but submit it to the seller. Obviously you want the house of that price in the beginning. Why should another offer coming in make you want to rescind that offer so don t let your ego don t let your feelings get in the way when you re making offers on highest and best situations look at the numbers see if it works make the best offer you can if they accept it great if they don t accept it move on find something else when i have bought properties that had multiple offers on them..
I do i have a number of different strategy strategies and i ve gotten properties a number of different ways. But what i always look at is how much i can pay to make the deal work for me. So sometimes. That s offering list price.
Sometimes us offering over list price. Sometimes that s offering under list price. But almost always at least keep my offer the same. I m not gonna rescind it unless you know i discovered something really wrong with the home or something that would change why would offer.
But i ll give you a few scenarios. So there s a reo property that i bought about a year and a half ago this bank owned that s what reo real estate owned spanked foreclosure. They had a list price if i think ninety nine thousand i looked at the house. Hey it looks pretty decent there s an owner occupied period of seven days.
Nobody from owner occupied buyers bid on the home he was open to investors. I made a bid obviously some other investors made a bid they came back at me. Said hey we ve got multiple offers give us your highest and best bid. I thought okay you know i probably won t get this house because i can t offer full price.
I m sure there s lots of competition. I am offering ninety two thousand is a cash offer though no contingencies real. I think i might have had an inspection. That was it and a couple days later said hey you got it i was not expecting him like hey great i got it for seven thousand less than list price.
I thought there s no way i would get it i mean is i ended up flipping that home and selling it for hundred and seventy five thousand. I believe after putting about fifteen twenty thousand dollars of work into it awesome deal for me worked out perfect. I didn t have to i even offer list price. I have to go over list price.
But that situation necessitated me offering less didn t list price on another situation there s a houses for ninety nine thousand this is my eleventh rental property i believe and that was just an amazing price i mean this house is worth probably a hundred forty hundred fifty thousand dollars after ten thousand dollars in work or so. I knew i could not find a house like that easily i mean. There s just no way. I ve been waiting for deals for a very long time this popped up in at ninety nine thousand.
I submitted my offer full price you like you know a couple hours after been listed seller took their time respondent came back. Said hey we have multiple offers you know please give us your highest and best all right this wasn t a state sale. I looked at the numbers figured out i ended up offering..
I think a hundred and nine thousand so i was ten thousand over list price. Because i knew it was still an awesome deal my numbers still worked and i didn t want to lose out on that property and i end up getting. It at 1 09. Is another cash offer no inspection.
No contingencies on that one and the selling agent had come to me. And said hey we actually had some higher offers than yours. But because you were cash because he had no inspection. The seller wanted to go with you you felt you could close you know without any problems.
Where some of the other ones were financing. So obviously that was a huge advantage other ones. I ve offered list price other ones may be slightly higher lower the thing that i try and consider when i am doing a highest and best offer. It s not the list price.
I mean that s somewhat important. I think people that get too concerned with that i think the sellers just trying to drive it up or rip them off or something i look at what i needed to flip what price they need to be at to make the profit margins. I want to make if it s a rental property. I look at you know where i want to buy it so i m buy a below market with the cash on cash return.
I want and sometimes that s list price sometimes that s under sometimes it s over and i don t try and you know save a dime here save a thousand dollars here just because i can i want to make sure i get that property if it s an awesome deal. I m all about buying awesome deals. I don t want to lose an amazing deal because i was trying to save a thousand dollars on a flip that i knew i could still make thirty or forty thousand dollars on i want to offer the most i can where i m still safe where i know it meets my numbers. If that makes sense another thing.
I always like to do. Which is kind of fun is like i said i offered ninety nine thousand or i say and offered ninety two thousand that s not really true. I actually offered like ninety two thousand seven hundred eighty nine. I offered one hundred nine thousand three hundred and forty two just a crazy odd number like that and i do that because if somebody else offers one hundred nine thousand and i offer one hundred nine thousand i want mine to be just a little bit higher just.
So i have that slight advantage and having that kind of crazy weird number. Sometimes it makes it look like i really thought about it hard how much i could offer i m a serious buyer. I really put thought into this i was at all the numbers you know i m down to the dollar and what i can offer and i think that s some you know a little trick with the seller to make them think i m really on top of myself i m not just thrown out you know oh i m gonna for 100000. And hopefully it sticks and if it does and i ll go beat him up on the inspection.
No i really thought about it. And i think that helps me out too. And then office also someone offers 109 or 99..
Or 92. Then i m with just a little bit higher a couple hundred bucks you know is a couple hundred bucks. So there s a lot of different things you can do in highest and best when i m submitting offers i always try to get things in as quickly as possible as fast as i can even if i know there s already offers on the table. I still try and do it as fast as i possibly can if i already know there s offers on the table.
I will also usually come in with my highest and best. Even if they don t ask for it because sometimes sellers will not ask for highest and best. They ll just take the best offer they get in the first day or two. So don t expect them to always ask for highest and best.
If you know this other offers present give them your highest and best in the beginning. Maybe they ll get you the deal and they won t even ask the other offers. I ll just accept yours that has happened to me as well so yeah don t just give up on those properties. Don t say oh.
It s impossible a great deal on the mls. It is possible there s people out there getting great deals on the mls. All the time. I think my last 10 flips.
I bought from the mls almost all my rental properties. I bob had been from the mls and i m in colorado. Which is one of the hottest markets in the country. So it s definitely possible and don t be afraid to make those offers all right thank you so much for watching.
Again mark ferguson investfourmorecom. Please check out my website subscribe to my youtube channel. I m trying to pump out as many em real estate investing videos as i can i m a pretty busy guy. Though so they re not coming out all the time.
But i appreciate you guys watching and you leave plenty. ” ..
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