Home Buying in Old Bridge>Question Details

Reobuyer, Home Buyer in New Jersey

In REO Purchases, does the last and best offer mean that I would not be able to change my offer again?

Asked by Reobuyer, New Jersey Thu Sep 18, 2008

I am in the process of buying an REO, and the agent has told me that the bank has asked for my last and best offer. According to my agent I would still be able to make a new offer even if theis last and best offering is rejected from the bank. This seems like a contradictory statement. Can some one advise on how i should proceed. Thanks.

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Well, the best and final offer thing is NOT carved in stone. I have been burnt on this game a few times.. Nobody says.. there is no rule, law or anything to make "Highest and Best" the only offer to be enforced.

Play along with it and it you lose it.. go back with a vengence. This can backfire and the listing agent may not present your offer after the fact, so If you choose to play the game.. you could lose.

Jut give it your best shot and get it over with.
1 vote Thank Flag Link Thu Sep 18, 2008
When a bank asks for your highest and best offer it does not always mean that there are multiple offers on the table. Most likely the agent is dealing with an asset manager and not directly with the corporate officers. Sometimes if there has been some negotiation and the offer is still not high enough for the asset manager to approve; the asset manager will ask for the buyer's highest and best offer to submit for corporate approval.
0 votes Thank Flag Link Wed Mar 18, 2009
When the bank asks for this it is usually because there is 2 or more offers in on the property and it is a way to get the price up. they can do this over and over until everyone but 1 person backs out or the offers stop going up then they pick the best one, the best offer isnt always the highest price, alot of it has to do with financing, terms and what if anything the buyer is asking for. The bank usually wont accept any contingincies in the offer and will not renegotiate after agreeing on a price. Make sure your deposit is at least 1% of the sales price and is in the form of certified funds. make sure you include a pre approval letter with your offer and lastly make sure you are ready to close within 30 days of acceptance by the seller. The most important is dont ask the bank to fix anything, do not change anything on the bank addendums and dont put any contingincies in your offer. These tips will help your offer get accepted over others. Good luck with your purchase.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Sep 18, 2008
Reobuyer: Yes I can. Well, Yes and no to another bid. The seller has asked for highest and best. That usually means that he has multiple offers. If he does and yours is not the highest on this go round, he may accept a higher bid than yours. No more offers from you, then. He may find yours the highest but still not what he wants as a minimum. He may than ask if you will give him "X" more in price, or terms and conditions. In that case, you may bid higher than your highest and best. Sometimes this procedure is called "best and final" but because it's NOT final, the more current expression is highest and best.

By the way, if yours were the only offer on the table, it would be more normal to counter with what the seller wanted than to go to this procedure.

Bottom line: My advice, give it your best shot; you may not get a second.

Good luck
0 votes Thank Flag Link Thu Sep 18, 2008
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