I've always thought that this "Best and Final Offer" concept was suspect, but now I have proof. I bid on an apartment and was told that 2 others also bid. The next day, the broker told me they were "going to Best and Final". My response was why would I change my offer. A) the apt hasn't changed and more importantly, B) you've given me no new info. I didn't change my bid (though my broker advised... [more]
I've always thought that this "Best and Final Offer" concept was suspect, but now I have proof. I bid on an apartment and was told that 2 others also bid. The next day, the broker told me they were "going to Best and Final". My response was why would I change my offer. A) the apt hasn't changed and more importantly, B) you've given me no new info.
I didn't change my bid (though my broker advised increasing by 5-6%) and amazingly, my offer was accepted. They were quick to say that I didn't bid the highest, but they thought I would be approved easily, so I was chosen.
Upon further reflection, I decided I had overbid and it really wasn't the apartment for me, so I pulled my offer. So, you'd expect the runner up to buy it right? For some reason, it's back on the mkt and having an open house this weekend.
I feel completely lied to. I doubt there were even any other offers.
Brokers all work together. We buyers should form a coalition where we fight this kind of b.s. No more Best and Final, no more bogus square footage measurements, no more lying brokers!!!!!
[less]
Response by anonymous
over 18 years ago
Posts: 127
Member since: Dec 2006
congrats on your intuition! similar thing happened to me..apt shows "in contract" now on streeteasy, but for (reduced) asking price (although I was told there were two MUCH higher bids) - maybe they didn't correct the price, but if it's accurate - what happened to to those buyers who outbid me?
#2--The contract amount wouldn't change the streeteasy price--you can see what it sold for after it closes, though.
Always a possibility though that the 2 "much higher bids" changed their minds much as #1 did after having been chosen.
Ignored comment.
Unhide
Response by anonymous
over 18 years ago
Posts: 115
Member since: Apr 2007
You should never bid more than you're comfortable with. This "Best and Final" stuff is indeed BS. I too was recently successful at getting an apartment, and I was told that my bid was $25K lower than the highest bid. I stuck with with deal (and am now in contract), however, because I felt that my bid was fair. Don't ever get yourself caught up in these bidding wars. It's a fool's game.
Ignored comment.
Unhide
Response by anonymous
over 18 years ago
This is SO FUNNY!!!!!!!!!!!!!!!!!!!!!!!!!!
Ignored comment.
Unhide
Response by anonymous
over 18 years ago
Posts: 31
Member since: Sep 2006
It's a complete scam. When I was shopping around I found a building I liked very much. After much research and a few missed opportunities a unit became available. It was listed easily $30k - $40k less then it was worth. I figured at that price I was willing to put in a bid sight unseen (I saw pictures of the unit on-line). The broker still hinted that this was going to be a "best and final." This unit was on the market 15 minutes!!
So obviously it drew much attention due to its low price and probably garnered many "best and final" offers.
I think this was a great scheme to set the price so low that it allowed to see wht the buyers would spend rather than the other way around.
I didn't get the apartment. Supposedly I was the highest bidder but that someone with an "all cash" deal got it instead. I was very bummed out.
However, there is a happy ending for me....I wound up looking at another co-op in a much hipper area and fell in love. I bought a fabulous one-of-a-kind apartment. In hind-sight....I am so glad I didn't win that "best and final." But I am quite sure that it was a a big game that the broker played and I think it was a discusting trick.
Ignored comment.
Unhide
Response by anonymous
over 18 years ago
Posts: 214
Member since: Feb 2007
Personally I hate best and final--think it causes a great deal of bad feeling, stress, etc. However, I wouldnt call it a trick--it is one of many marketing techniques. Looking for a place with a friend in the bay area a couple of years ago I was amazed to find that this was simply the way things are done out there--things get listed quite a bit below what they would sell for, and all bids would be due on a certain date--effectively best and final was just the normal way.
Ignored comment.
Unhide
Response by anonymous
over 18 years ago
Posts: 1905
Member since: Apr 2007
From a buyer's perspective, of course, it's a very uncomfortable place to be so you just must decide what the place is worth to you & go with it BUT as a seller it's a great way to maximize the take. When you go to sell, this B&F b s may look different to you. I'd like to hear from a real estate pro on this one. Oh, excuse me, I forgot, they're all a bunch of parasite sleazeballs - NOT.
Ignored comment.
Unhide
Response by anonymous
over 18 years ago
Posts: 214
Member since: Feb 2007
I am number #8, I am a real estate pro, and though I understand the position it puts the buyer in, in some way it is actually MORE fair to the buyer than anything else. This assumes of course that the broker and seller are behaving correctly within the confines of a best and final--that is to say accepting the best deal after the deadline for the bids. The alternative would be just playing offers one against the other til it reaches its breaking point and actually this is less fair to the buyer I believe. When you all of a sudden have a bunch of bids then best and final can be the best way to go. The reason I never start out trying to create a situation like this, other than the bad feelings etc, is that it can backfire because if you choose the wrong deal and they end up flaking, you might have a bunch of buyers SO quick to assume (as is made evident on this board)that the scumbag broker was just lying and then stomping away and rescinding their offers.
Ignored comment.
Unhide
Response by anonymous
over 18 years ago
Posts: 214
Member since: Feb 2007
and btw, a situation as I outlined above could easily have happened with the scenario as described by OP--s/he was chosen, flaked out, perhaps when the runer ups were informed of the situation they thought "we've been played! There was no higher offer!" and walked away.
Ignored comment.
Unhide
Response by maximoproperties
over 12 years ago
Posts: 2
Member since: May 2009
I will tell you about BS. I got into a best and final with and all cash buyer and we won ( the asking was $1,3M and we offered $1,330,000) the seller lawyer sent the contract my buyer signed and sent the deposit, after a week the broker email me and told me the sellers if out of town but its a done deal ( so far so good) a week after she sent me an email telling me the good news " my seller was accepted in his new coop but we have an offer $30 K higher" She asked me to tell my buyer to go for that extra $30K.
Of course the deal did not happen .
Best and final in the hands of dishonest seller and brokers do not work and is full of it
Ignored comment.
Unhide
Response by rb345
over 12 years ago
Posts: 1273
Member since: Jun 2009
1. I once had a highest and best
2. only two bidders
3. the same person submitted bids thru two different brokers
4. because I promised I would I accepted the higher offer
Ignored comment.
Unhide
Response by Flutistic
almost 12 years ago
Posts: 516
Member since: Apr 2007
From here it looks like Manhattan (perhaps also all of NYC) has firmly moved to the best and final procedure that is used in California whenever there is more than one bid for the same property.
Is the counter offer obsolete?
Ignored comment.
Unhide
Response by mrather
almost 12 years ago
Posts: 0
Member since: Aug 2012
It really depends... I've seen a lot more of that type action in the larger apartment market (2 bed ). But I still think it has to be in a desirable location, great building, or have some other type of appealing factor. In the smaller apartment market (studios and one beds), especially in neighborhoods like the UES where there's currently a lot of inventory, it isn't quite as competitive. I think on those types of units you're likely to see bids go back and forth before going into contract.
'/%3e%3c/g%3e%3c/svg%3e)
congrats on your intuition! similar thing happened to me..apt shows "in contract" now on streeteasy, but for (reduced) asking price (although I was told there were two MUCH higher bids) - maybe they didn't correct the price, but if it's accurate - what happened to to those buyers who outbid me?
http://www.hbo.com/entourage/
Watch the recent episode of Entourage.
#2--The contract amount wouldn't change the streeteasy price--you can see what it sold for after it closes, though.
Always a possibility though that the 2 "much higher bids" changed their minds much as #1 did after having been chosen.
You should never bid more than you're comfortable with. This "Best and Final" stuff is indeed BS. I too was recently successful at getting an apartment, and I was told that my bid was $25K lower than the highest bid. I stuck with with deal (and am now in contract), however, because I felt that my bid was fair. Don't ever get yourself caught up in these bidding wars. It's a fool's game.
This is SO FUNNY!!!!!!!!!!!!!!!!!!!!!!!!!!
It's a complete scam. When I was shopping around I found a building I liked very much. After much research and a few missed opportunities a unit became available. It was listed easily $30k - $40k less then it was worth. I figured at that price I was willing to put in a bid sight unseen (I saw pictures of the unit on-line). The broker still hinted that this was going to be a "best and final." This unit was on the market 15 minutes!!
So obviously it drew much attention due to its low price and probably garnered many "best and final" offers.
I think this was a great scheme to set the price so low that it allowed to see wht the buyers would spend rather than the other way around.
I didn't get the apartment. Supposedly I was the highest bidder but that someone with an "all cash" deal got it instead. I was very bummed out.
However, there is a happy ending for me....I wound up looking at another co-op in a much hipper area and fell in love. I bought a fabulous one-of-a-kind apartment. In hind-sight....I am so glad I didn't win that "best and final." But I am quite sure that it was a a big game that the broker played and I think it was a discusting trick.
Personally I hate best and final--think it causes a great deal of bad feeling, stress, etc. However, I wouldnt call it a trick--it is one of many marketing techniques. Looking for a place with a friend in the bay area a couple of years ago I was amazed to find that this was simply the way things are done out there--things get listed quite a bit below what they would sell for, and all bids would be due on a certain date--effectively best and final was just the normal way.
From a buyer's perspective, of course, it's a very uncomfortable place to be so you just must decide what the place is worth to you & go with it BUT as a seller it's a great way to maximize the take. When you go to sell, this B&F b s may look different to you. I'd like to hear from a real estate pro on this one. Oh, excuse me, I forgot, they're all a bunch of parasite sleazeballs - NOT.
I am number #8, I am a real estate pro, and though I understand the position it puts the buyer in, in some way it is actually MORE fair to the buyer than anything else. This assumes of course that the broker and seller are behaving correctly within the confines of a best and final--that is to say accepting the best deal after the deadline for the bids. The alternative would be just playing offers one against the other til it reaches its breaking point and actually this is less fair to the buyer I believe. When you all of a sudden have a bunch of bids then best and final can be the best way to go. The reason I never start out trying to create a situation like this, other than the bad feelings etc, is that it can backfire because if you choose the wrong deal and they end up flaking, you might have a bunch of buyers SO quick to assume (as is made evident on this board)that the scumbag broker was just lying and then stomping away and rescinding their offers.
and btw, a situation as I outlined above could easily have happened with the scenario as described by OP--s/he was chosen, flaked out, perhaps when the runer ups were informed of the situation they thought "we've been played! There was no higher offer!" and walked away.
I will tell you about BS. I got into a best and final with and all cash buyer and we won ( the asking was $1,3M and we offered $1,330,000) the seller lawyer sent the contract my buyer signed and sent the deposit, after a week the broker email me and told me the sellers if out of town but its a done deal ( so far so good) a week after she sent me an email telling me the good news " my seller was accepted in his new coop but we have an offer $30 K higher" She asked me to tell my buyer to go for that extra $30K.
Of course the deal did not happen .
Best and final in the hands of dishonest seller and brokers do not work and is full of it
1. I once had a highest and best
2. only two bidders
3. the same person submitted bids thru two different brokers
4. because I promised I would I accepted the higher offer
From here it looks like Manhattan (perhaps also all of NYC) has firmly moved to the best and final procedure that is used in California whenever there is more than one bid for the same property.
Is the counter offer obsolete?
It really depends... I've seen a lot more of that type action in the larger apartment market (2 bed ). But I still think it has to be in a desirable location, great building, or have some other type of appealing factor. In the smaller apartment market (studios and one beds), especially in neighborhoods like the UES where there's currently a lot of inventory, it isn't quite as competitive. I think on those types of units you're likely to see bids go back and forth before going into contract.
Max Rather
The Corcoran Group