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September 1st, 2009 3:33 PM by David W. Welch
If you are actively trying to purchase a home in Orlando, odds are you have heard the phrase "highest and best". This phrase is typically associated with bank owned properties and it goes hand in hand with multiple offers. Forget the negotiating and make your best offer right up front when there are other offers on the table. While the banks would prefer cash deals, someone that comes in significantly higher, but has to obtain financing, will beat out a cash deal. The banks are very bottom line oriented and generally not looking to negotiate price and terms when they have multiple offers. They will take the highest offer that has the best terms, and then they counter that offer with their standard addendum. Each bank is different, but the bank addendum essentially makes it clear that the sale is as-is and the bank is not going to repair anything. They also typically place a per diem penalty if the buyer's loan is not ready in time to close. An extension to the contract can get pricey with per diems running anywhere between $50 to $150 per day.
Make sure you do your homework ahead of time, so that you know the values in the neighborhood before you write your highest and best. There are still good deals out there even if you do end up paying the highest and best. I am just not so convinced there are many steals out there.
Orlando Real Estate, David Welch Real Estate Optimist