Highest And Best Offers
In a highly competitive market like that which exists in Asheville today, sellers can often take their pick of offers. That means that buyers have to be nimble and willing to put their best foot forward in order to win a bidding war; to that end, sellers may ask potential buyers to present their highest and best offers. While the first term is fairly self-explanatory – the highest offer is, obviously, the offer of the most money – the second can be a bit more complex. What exactly makes a given offer the best offer?
There are several factors that sellers may look at to determine which offer is the best, and this judgment will be completely subjective – what one seller may consider to be the best offer might not be so for another. In general, however, sellers look at a few common factors in order to pick out the best offer:
- Price – as stated before, in this case, things are fairly black and white. Almost always, the highest price is the best price.
- Due Diligence – how much time does the buyer need to look at the property and have a hard contract? For some sellers, a quick close might be the most important factor – in this case, a short due diligence period could make an offer the best offer.
- EMD – how large of an earnest money deposit is the buyer willing to put on the table? A large EMD can signal a strong desire to buy and may increase the chances that a contract will close. For sellers who have been burned by tentative buyers backing out in the past, this may be the most important factor.
- Financing – how is the buyer going to finance their purchase? Will they be paying cash, or taking out a loan? If taking out a loan, what type of loan is it? Depending upon the process by which the seller is marketing their home, this could be the determining factor in selecting the best offer.
- Timeline – how quickly is the buyer willing to close? For a seller looking to move quickly, a short timeline can easily make for the best offer.
How each individual seller chooses to weigh these criteria is subjective, and entirely dependent upon their unique preferences and situation. They must determine what it is that makes an offer the best to them, whether that’s the highest price or alone or a combination of multiple factors.
If you’d like to learn more about highest and best offers or Asheville real estate in general, contact Asheville Cash Buyers today at 828-222-6443, or visit us online at AshevilleCashBuyers.com!