Best and Finals – Extortion or Necessary?
After you have put an offer in on your dream home you may feel like the Estate Agent is trying to extort you if they come back and ask what your best and final offer is. Therefore, we have asked, Best and Finals – Extortion or Necessary?
We use Best and Finals. We don’t do this to extort the buyer but simply to make the process smoother and quicker.
Think about this:
An Estate Agent has three people offering similar prices on a property.
Asking Price £250,000
Buyer 1 – offers £248,000
Buyer 2- offers £248,500
Buyer 3 – offers £248,750
There is only £750.00 separating these offers. As we discussed in our blog ‘should I sell my house before I find a house’ buyers’ situations are different and therefore that can influence a vendor. But imagine each person had the same situation. The buyer is likely to choose the highest offer.
How would you feel if you missed out on your perfect house by only £750.00?
It may well be that £750.00 is a stretch too far, but any Estate Agent doing a good job would go back to each of the buyers and see if they would like to put in a higher offer. If the offers are increased, the Estate Agent follows up on these offers, and so on until there is one clear buyer who has offered the most, and the other buyers cannot raise their offers. This could be quite a lengthy process. As a buyer you may even become irritated by the calls asking if you would like to increase your offer. Therefore, an Estate Agent will often use Best and Finals.
We try to eradicate buyer’s remorse by offering Best and Finals where houses are popular.
I hope this blog has helped to dispel any myths surrounding Best and Final offers, and you can decide for yourself whether they are extortion or necessary.
Thank you for reading. Please contact us if you have any queries regarding selling your house, buying a new house or any general queries about the house moving process. Email: hello@fowlerandpowell.co.uk
Our mission is Moving Made Personal, we take on a maximum of 8 properties per member of staff to ensure we do everything we possibly can to help sell your home. To view other blogs in our series click HERE.
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We hope you have found this information useful, thank you for reading.
