"Highest and Best"
Highest and Best Offer. The phrase brings back nightmares of 2004 and 2005 when every potential homebuyer had to write 5 or 6 offers, waive inspections, appraisals, bring extra cash, and write mushy notes to the seller about why they loved their spectacular home (even if that home was an 1,150 sq. ft. hovel of you-know-what). Back then, no sooner was the sign in the ground and the lockbox on the door then multiple offers started showing up on the fax machines or e-mail accounts. Those were the days of putting homes on the market on Thursday with remarks that "Sellers will review all contracts on Tuesday evening!" Confident. Arrogant. Maybe? But, it was the real estate reality.
The market correction adjustment debacle was supposed to have changed all that. And it did. For a while.
Guess what Washington D.C. & Northern Virginia....? "Highest and Best" is back. It's rested. It's tanned. And, it's back for action this Summer in the D.C. region. This might not be what you want to hear as a homebuyer, but if you're thinking about selling your home, it may be music to your ears!
"Highest and Best" occurs when a listing agent gets multiple offers submitted on a home. Rather than counter-offering each one, the sellers decide to set up a closed-bidding where each buyer resubmits their "highest and best" offer by a certain deadline and the sellers pick the one that generally will net them the most money.
A recent story from The Washington Post confirms the present market conditions: Real estate bidding wars are back in parts of D.C. area
I've personally had two situations this week alone with buyer clients which have turned into "Highest and Best" situations. There are two differences from the height of the market until now. First, these homes have been on the market for quite some time (about 60+ days) and their listing prices have been gradually reduced. Second, the offers are below asking price and the sellers are hoping to get offers close to or at asking price. Several years back, the listing price was more like the starting price and homes got bid up from there.
Ready to get the highest and best price for your Northern Virginia or D.C. home?
Give me a call at 703-626-0715 or contact me by e-mail at brian@brianblock.com
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