How to respond to Banks counter "HIGHEST & BEST" (auction, foreclosure)

[mbrrt]

Scenerio, offered 10% less than asking. Bank responds with "Have another offer, what is your HIGHEST AND BEST OFFER?"

Torn between offering 5k more or standing firm. Any advice, experiences would be greatly appreciated

[Karen123RE]

Is there another offer on the table? Usually a 'best and final' scenario is when there are multiple offers on a property and everyone is given a fair chance of coming in at their best and final offer. You only get one chance to get it right, so if you really want this house, then think carefully.
Would the 5k take it up to asking price?
I had a client who had a similar situation and immediately offered $20k above asking....she got the house!

[Luvmy3dogs]

I think it would really depend on how much you want the house and what the house is actually worth. You certainly don't want to offer more than current market value. Good luck in your decision

[FalconheadWest]

I always tell my clients that they need to offer a number that if they didn't win, they would not regret it. If you offer 5k more but the winning bid us 2k or 10k higher than yours, would you say, "I would have paid that." Or would you say, "I never would have gone that high!"

No one can tell you what to offer as no one knows what your price would be to WIN the bid, and not say you paid too much. Too many people submit offers to come in second and that makes no sense.

[Silverfall]

Originally Posted by FalconheadWest

I always tell my clients that they need to offer a number that if they didn't win, they would not regret it.

This is my exact advice to people too. Make your best offer, and if someone offers higher you are totally okay with that.

[399083453]

Someday, I hope an ebay auction style will take over the "best and highest offer" Its just a crazy way to do business.

[mbrrt]

Thanks everyone. I am going to go up 5k. I am willing to live with the outcome, win or lose. Your advice solidified my decision. I had been thinking, if they don't take the extra 5k, then I DEFINITELY know they weren't taking the previous offer I made, so i won't ever "wonder" what could have been I'll keep you posted...

[Electrician4you]

Yeah I had a bank do that to me. I told them my offer was my highest and best offer. I could of offered more but to me the house was worth x. I knew it needed work and lots of it.They told me we got better offers. Great. Thanks have a nice day. Fast forward 1.5 months ring ring. Hey guess what we accept your bid. Ok I'm game. Go through the house need a complete remodel. Bank threw a carpet and paint renovation to make it look presentable. Under that it was falling apart.Too bad the house was literally on its last leg. The morons didn't even turn on the gas so I couldn't. Have the inspector check appliances. Either way I wanted to resubmit for 60k less. My realtor flat out refused to do it because she said the bank will never go for it.
The house next doit was a foreclosure sale for 360k . They wanted 420k I offered 410 initially. When my realtor decided to do as she pleases I decided to oart ways and walk. House was walked on by two previous bidders I was third in line. House sat for another 6 months finally sold for 405. I drove by it. In a year absolutely nothing has been done to improve it.


If I were you stick to your guns. Never go higher than you're comfortable with bidding. Tell them that is my best offer take it or leave it. If it's truly what you're willing to pay. Its a business transaction.

[399083453]

I remember one house I bid on the guy bid $50,000 over asking price. He got it. He rehabbed it and its been sitting on the market for 2 years now. I'm not sure he is going to break even or not.

[jameshardin]

It depends on what you are going to use the property for. If you are going to occupy it yourself, it might be worth increasing your offer. If you are going to flip it, look at your margin, and adjust accordingly, leaving yourself a safety buffer. I usually don't increase the offer substantially.