What does highest and best offer mean when buying a foreclosure

Metro Detroit Michigan foreclosures

Metro Detroit Michigan foreclosures are selling whether they are in Livonia, Farmington HillsDearborn, or Redford.  Banks are pricing them so they sell.  Sometimes these Michigan foreclosures are selling very quickly.

Sometimes some Metro Detroit area foreclosures get multiple offers from different buyers.  The bank does not automatically accept the highest offer.  What they instruct the real estate agent to do is to tell all the buyers to put forth their “highest and best offer”.  What you, the buyer, need to do is to put the highest price that you think will secure the sale.   If you really want the house you may have to put in a full price offer or even more than the list price.

You don’t get another chance to renegotiate or to win the property.  A one shot chance.  It is like a sealed bid.  Highest bid/best offer.

Remember that banks like

  1. Cash offers first
  2. High downpayment offers
  3. Offers with no contingencies
  4. Offers that are going to close quick

Banks are likely to turn down an offer that is asking for down payment assistance and seller’s closing costs and accept one that is only asking for sellers concessions.  Banks want a deal to close so they are going to chose one that is the strongest and is most likely to close.  They look at the mortgability of the buyer.  They want an easy mortgage or cash.

For more on Metro Detroit foreclosures, Michigan home buyers tips look at the categories on the side or go to www.RussRavary.com for more information.  You can search thousand of Michigan homes for sale by clicking on the search for homes button above.

My quote of the day:

“True patriotism hates injustice in its own land more than anywhere else.”

Clarence Darrow

 

Posted in Blog, Foreclosures, investment properties, landlord

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