Thread: highest and best

Originally Posted by d4properties

I have heard this from realtors give your best and highest offer.
Some times the realtor tells me this and I wonder are they just driving up the cost for more commisssion.

This is one of those comments like "We have another offer on the property." Maybe they do maybe they don't. I would not adjust my price based on whether they say that or not. Just my 2 cents.

If ana agent is does not have another offer and says highest & best, or says there are other offers, they run the risk of you just withdrawing your offer.

So it stands to reason that unless the agent is willing to lose your offer, he is not going to risk bluffing. The difference in commission is too small to make it worth it to claim there are other offers unless there truly are other offers. I have a property that is in multiple offers right now, if I had only one offer I would not try to get the potential buyers to go higher by claiming highest and best, I would advise my client, the seller to counter back at a higher amount.

Negotiating is the way to get more from a potential buyer, not tricks or outright lies. But I have no doubt that there are idiots out there that will try to claim highest and best when another offer does not exist. An idiot cannot last long in this business.

There's a lot of factors as many of you know when you're looking a offer.
a. price b. downpayment c. mortgage approval d. closing date e. other factors

Sometimes, when there are multiples offers on the property and the your offer is attractive in b, c, d, e, but a is not there. This many be ask. The agent just can come out and say the other offer is higher or the other offer is so and so.

Note:Remember that the listing agent is not the buyer's friend. He works for the seller and the seller only.

I agree with Vegasloanlady.... The agents are not your friend... if they declare a price, you don't know if it is really a lower price or a higher one... Sometimes some of the agents just want bigger commision..

Originally Posted by d4properties

I have heard this from realtors give your best and highest offer.
Some times the realtor tells me this and I wonder are they just driving up the cost for more commisssion.

Most likely you have heard this while trying to buy a foreclosure. The is the language used by banks when they have multiple offers. If you don't believe the agent when this happens just stick to your price and see what happens.

If you don't want to have an agent dependant on a commission you can always find an agent who will work for a set fee which you pay. Give it a try.

I have participated in many bidding wars on bank owned properties in So. Cal. lately and each time there were 10+ offers and each time the bank came back with best and final offer. I offered $75,000 more on one property and lost out, but finally figured out whats been happening. Unless you deal directly with a listing agent, forget buying a bank owned property..at least in this So. Cal area. I bid way over asking price on many bank owned properties and lost out. Then I started dealing directly with listing agents..each and EVERY agent told me the highest offer that came in so I could beat it. Today I was told after bank asked for best and highest offer what exactly the highest bid was (asking price was $325k ..highest bid after best and final $364500. I also placed an offer on a nonbank owned property and was told by the agent after offering 345000 on a property that there was an offer for 350000 that came in the same day as mine. I offered 350200 and got it. I had three other agents who told me that they would tell me the highest bids on properties.

Are all real estate agents this unethical or is it just this community in So. Cal??? All I can say is dont waste your time hiring a buyers agent..go directly to the listing agents, especially for bank owned properties.

Not sure I could follow your post so I have to ask what did you think agents were doing that is unethical?

Telling you what the highest and best was? Because if they have in writing to tell other potential buyers what the highest and best price is offer is, then that is OK.

I think you are saying the listing agents are wanting to double end the commission by giving potential buyers information that will make buyers the listing agent brings to the table the eventual highest and best offer?

The thing about it, does this put more money in the listing agent's pocket or get a higher net for the bank? Or both? If the agents are only acting to get the most money for their client and to not go into the agent's pockets, it may be seen as or shady but it is doing what the listing agent is supposed to. Get the most money for the property for the client. Whether this actually is in the bank's best interest or there is some kind of manipulating the sale is hard to say without alot of details we may never get to know.

Too much risk for a listing agent when you consider they could get into so much trouble, lose listings etc etc. Something doesn't sound right but unless you can follow up and know all the details of the other offers, it will always make you wonder/feel cheated.

Originally Posted by Vegasloanlady

There's a lot of factors as many of you know when you're looking a offer.
a. price b. downpayment c. mortgage approval d. closing date e. other factors

Sometimes, when there are multiples offers on the property and the your offer is attractive in b, c, d, e, but a is not there. This many be ask. The agent just can come out and say the other offer is higher or the other offer is so and so.

Note:Remember that the listing agent is not the buyer's friend. He works for the seller and the seller only.

Good advise.

When you find a home to buy, write your offer immediately. Ask your agent to call the seller's agent to find out if there have been recent showings and whether anybody else might be writing an offer.