What does “highest and best” mean on offers in Ann Arbor?

Typically you will hear this when you are interested in purchasing a foreclosure in the Ann Arbor Area. On a foreclosure most have already been priced by the bank below market value.

In Ann Arbor most foreclosures sell for over asking price.

Yesterday I was doing some research on the homes that sold in our MLS that were bank owned. There were 12 and of the 12, 7 closed over asking price. One in particular was listed at $204,000. and closed at $250,000. Others were less dramatic.But that home sold for 22.5% over asking price.

If you are buyer in the Ann Arbor Area, and you want to purchase a foreclosure, then be prepared to offer more, especially IF it is a brand new listing.

The banks are very good about reducing the prices of the homes if they have been on the market for 14-30 days. They will reduce it to get it sold.

Of the 5 foreclosures in Ann Arbor that did NOT sell over asking price they were not in Ann Arbor, or Saline. They were further out.

When your buyer agent calls for information on a home you want to purchase, the listing agent will “usually” tell them that they have MULTIPLE OFFERS, and will be presenting all of them at such and such a time.They will say “have them write their highest and best.”

Don’t think the bank will counter those offers.

They will usually take one of them.

If all the offers come in really, really close, the buyer agent could send you a Bank form requesting the “highest and best.” from all the offers .

Advice:

If you really want a home under market value, and their are other offers or it is new on the market, give them your best offer the first time.

What is your best offer?

I tell my clients it is the amount you can pay and if you don’t get the home, can lay your head down at night and know you gave them your best offer.

Many times I have had buyers come back and say, “oh, we should have offered more.”

Yes, you should have.

Next time you will.


 Highest and Best on Offers in Ann Arbor

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 Highest and Best on Offers in Ann Arbor

About Missy Caulk

Missy Caulk has written 412 post in this blog.

Ann Arbor Real Estate Broker, affiliated with Keller Williams Realty and team leader for the Missy Caulk TEAM. We love the Ann Arbor area, showing homes and talking about our great community.