You’ve been looking at homes for months. And you finally found one you like and just as important it’s in your price range. Now the question: Do you make your highest offer right from the start? Certainly, you really need your Realtor’s guidance on this.
Your Realtor needs to find out from the listing agent, how offers will be handled. Will they be countering all of them or just a few? However, the rules can change midstream. It really depends on how the seller wants to handle the situation
Their are pros and cons of making your highest offer first.
Cons: The seller’s agent may shop your price. Let’s assume you write $1,700,000 on a home listed at $1,500,000. The seller’s agent may counter everyone at $1,700,000 or highest and best (price).
Pros: If you don’t initially come in strong, you may not be included in counters.
Keep in mind there are numerous factors in being the successful bidder. Terms are important as well. Sometimes, the seller will accept an offer lower than the highest one because the seller believed the terms to be superior. Perhaps the successful buyer waived their loan and appraisal contingency and was offered just a bit less than.
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