"Best & Final offer" process (new to me)

PJD

I had a second viewing on a property today that i'm really interested in, - and have made what I consider to be a fair offer.

The EA has told me that someone else has also put in an offer, of which the vendor is considering, - I told the EA what I was considering offering, and the EA told me that that is higher than what was already offered.

I have since put in my offer and am waiting for a response. However, the EA mentioned that it's likely that this week the vendor will ask for the best and final offer from each of us, and he'll make a decision on who to go with.

I'm not sure whether this is a good or a bad thing?

I would rather just say, "would you accept X?" - if no, then I would ask what they would consider, and to see if I would go up. Maybe meet in the middle, - whatever. Nice and simple.


With this "best and final offer", - the other guy might not raise his offer at all, - but meanwhile, I, not wanting to lose the property, may decide to up my offer by 5k for eg, - when there was no need to?

I guess "best and final bids" stops a bidding war?

I'm not sure what's best though? Bidding war or best and final offer?

I dont want to lose the property over, say, a grand, - but then again, I dont want to pay thousands over what I could have paid, had it not just been a straight forward negotiation.


I guess I have no choice in the matter over the 'best and final bid' process, - as it's the vendors decision? Or have I?

Any comments and enlightenment welcomed, - as this is the first I have heard of this process.

Thanks for reading if you got this far!!

Phil_rich

Sounds like the agent is playing you. Had your original offer been rejected before you increased it?

PPPingu

Hmm, I'm sure you'll hear these from others, but just offer a fair price, and don't let the agent / vendor mess with your head!
If the offer is reasonable, and it is rejected, then you can walk away knowing that someone else is paying more than you thought it was worth. If it is accepted then you've got the house you want for the price you want!

KateLiana27

Stick to your original offer and sit tight. There may well not be another buyer...

And even if there is, you don't want to pay more than a house is worth just to secure it.

satchmeister

Strange how there is another offer exactly when you are offering ... I have been in this situation and said the other people could have it ... this was last Sept, still not even SSTC. If they are playing games now (they may not be and there may be two genuine bidders) they will play games later on. I just find it odd that they have, in this market, two bidders at the exact same time.

hcb42

depends how popular the area is/home is etc...

you either bid the same, up it or walk away...

PJD

The property was on at quite a high price, - but had no interest. Only two weeks ago he lowered the price by 20% - inviting offers over.... - in attempt to get as many people through the door and generate a sale at whatever he could get.....

It worked and he had quite a few viewings... - this is how he has come into more than one offer at the same time...

hcb42

are you in Scotland?

PJD

No, England

Egg_custard_2

In my [limited] experience, best and final offers aren't the end of negotiations at all. It probably helps speed things up, but EAs still tend to encourage higher offers from each party even after they have both made their 'best and final' offer.

I would say sit tight and give your current offer as best and final. If the other party offer higher, the EA/vendor are highly unlikely to overlook any increased later offers you make.

martindow

Is there any mileage in a situation like this for putting a time limit on your offer to try to prevent a prolonged session of playing buyers off against each other (assuming they really exist)?