Is It Okay For A Seller To Counter A Best And Final Offer?
If you're a real estate agent, this blog post is for you. Have you ever had to deal with a seller who countered your best and final offer? Asking that question may seem like an open-ended one, but there are definite rules about whether or not it's okay for sellers to do so. There are two different types of offers: the first type is where the buyer agrees to purchase all of the property's goods and services at full price; while the second type is when they agree to buy some items at full price and others at a discounted rate. The latter kind is known as a "best and final" offer. So what happens if a seller counters your best and final offer? Read on!
What Do We Mean by Best and Final Offer?
As mentioned, estate agents will often use this more forensic method of selecting a winning bidder when there are several interested parties. It most commonly occurs in a busy and rising property market where buyers have been waiting for the best opportunity to get their hands on some gorgeous houses at bargain prices – which is exactly what you can expect with an ‘all out’ final bid war!
The process works similarly as sealed bids: all offers must be put forward by deadline day; winners would then become enemies until only one person remains standing between them owning said home or land plot (depending).
The auction process is a lot more fun when you get to look for the best offers.
A sealed bid, as it sounds like in an envelope with all bids submitted at once and then opening them up after time expires so there's no chance of anyone getting overlooked!
Why do they offer Best and Final offers?
There are many estate agents who use a best and final scenario to sell properties, but this should not be seen as an underhand tactic. It is often the fairest way for sellers to assess all of their interest parties so that they can select someone with similar plans in mind when buying your house or business enterprise equity share from you
One major reason why people might want this type deal? When buyers know what price range they're working within; it makes negotiations much easier having done some research beforehand into market rates and what offers you can make.
Government entities are frequently mandated to choose vendors and suppliers who offer the lowest possible prices for a service. The manager of this procurement process will still permit weighing other factors such as reliability or competence in addition with final bid price, but they have no say over what these items mean on an individual basis; it's more about how much weight those particular terms carry within the context at hand than their absolute worthiness by themselves outside said situation alone (for example: "a company that offers excellent quality").
A prospective buyer may attempt to cut short the negotiating process by requesting a best and final offer. This effectively tells other interested parties that there is competition, which could result in an increase of purchase price or concessions sought from buyers.
The Special Case
Some sellers are willing to accept a high bid from one bidder only for them to turn around and accept another. This is done because in some very hot markets, the seller's asking prices have been too optimistic which causes these people not to be satisfied when more than one party approaches them about buying their property at that price or lower.
The buyer who gave the winning best and final offer may also withdraw their bid. This is because of new information that became available about a property or questions surrounding the bidding process including whether other bidders were driving up prices, as well as specific details of your transaction with them which led to an understanding being changed after it was submitted for acceptance.
In such cases, sellers will choose the second-best offer.