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Buying or Selling a Home/best and final offer versus higher counter bid

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Expert: John Hendricks - 4/27/2009


Question
HI John
Thanks for the great info a few weeks ago. Our house went on the mls last
Thursday and by SUnday's open we had 2 solid offers slightly above asking
and I expect about 2 more. My Realtor suggests countering a bit higher as it
is "cleaner"  and won't scare people away. I feel our house could do really well
and think maybe we should do best and final offer. Could you let me know
the pros and cons. We will be reviewing offers and countering on Wednesday
afternoon
Thanks
Melinda

Answer
Dear Melinda;

Congratulations on getting two offers on your home… In multiple offer situations you are absolutely correct not to scare the either or both offers away due to trying to get a higher asking price.

You should listen to your agent, but here are a few things to consider under the circumstances.

1.   Take a look at the quality of each buyer, the offer itself, and terms and conditions being presented.

2.   Note if the differences in each offer… pros and cons

3.   See if there is one offer that stands out over the rest. In this case, you may want to work with that offer first to see if you can come to an agreement before acknowledging the second offer. If the first does not agree to your satisfaction, then negotiate with the second offer without acknowledging your negotiations with the first. If your Realtor is good, he/she could get an answer to the counters in a minimal period of time.

4.   After you come to an agreement with one of the offers, you have already negotiated with the second offer and now you can offer them back-up position if they would like. The back-up offer will secure your position with the first offer. Your agent will let the primary offer that was accepted that there is a backup offer in hand. Usually this fortifies your position on further negotiations if they should come about. In other words you can say no if you feel that your position is solid. Your agent will explain…

5.   If you were to ask for a resubmission for the best and final offer from each buyer, you may chase one or even both away.

6.   Try and negotiate a deal with the first offers… There is an old saying “Your first offer is usually your best offer.”

I am sorry that there was a delay in my getting back to you. I recently bought a real estate company in Mexico and have been wrapped up with that for the last 10 days. Please accept my apology. Please let me know what happened if you get the chance… Good luck!

Warmest Regards;
John Hendricks
JohnHendricks@Marin1.com

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John Hendricks

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As a California Realtor for 23 years practicing in Marin and Sonoma Counties, it is now time to provide counsel through AllExperts.com to those who need advise in real estate. My knowledge and experience includes a wide range of resale residential real estate purchases, new home sales, income related investment properties involved in 1031 exchanges, and land. Let me help you in any of these areas...

Experience

John Hendricks has established himself as one of Marin & Sonoma Counties premier Realtors. A native Californian, John is a well-known and respected Realtor in both Marin & Sonoma Counties who has resided in the Northbay since 1976. John began his real estate career in 1986, and since then has distinguished himself as one or Northern California's top producing Realtors. Before joining Frank Howard Allen Realtors, John was an associate of the Prudential California Realty from 1990-1992 where his outstanding sales achievements earned him one of the company's highest honors, the prestigious "President's Circle Membership", presented to the top 2% of associates for sales and earning excellence. Since his association with the highly regarded Frank Howard Allen Realtors in 1992, John has once again established himself as one of his company's Top 10 Producing Realtors in Marin & Sonoma Counties for the years 1993 through 2007 and now in 2008. Five continuous years of outstanding performance has now allowed John to join 15 other Realtors in the prestigious "Lifetime Hall of Fame" for Frank Howard Allen Realtors. John established a group of professional individuals who specialize in a variety of areas in real estate called, 'Lundmark-Hendricks Fine Homes' This group of professionals are dedicated to the success of representing clients with the greatest amount of care and service when either buying or selling real estate.

Organizations
California Association of Realtors National Association of Realtors

Education/Credentials
Upon Request...

Awards and Honors
Frank Howard Allen Realtors "Hall of Fame Member" Chairman's Circle for 10 consecutive years

Past/Present Clients
Joe Louis & Sharon Sigurdson We want to thank you again for your excellent representation of interests during the recent purchase of our home in Petaluma as well as the sell of our home in Mill Valley. We had the unusual pleasure of working with you during the last year both as sellers and buyers. We felt that our interests were always paramount and that we received a very fair price for the sale of the Mill Valley house as well as our purchase of our new home. This speaks particularly well of you, because of the recent unstable and chaotic real estate market. Will Finke "Quite frankly, we came out of a very difficult situation, which time does not allow elaborating on. This was one of the greatest experiences of our lives as clients. John Hendricks is one of the top businessmen I have ever met." Bruce & Nancy Rosentreter "I chose John Hendricks to sell my house. I picked him because I thought he was professional, aggressive, and that he could get top dollar for my house. He fulfilled my expectations completely." Joy Schuelke "Since we were trying to sell a high end home in a very tough market, and in the middle of a very rainy winter, the prospects seemed quite bleak. I was convinced at the time, and am even more so now, that without John's tenure, patience, and tenacity, we would have not been able to move the property." Lynn McCarthy "I cannot stress strongly enough how impressed I was with the service provided to me by John and his group. Throughout the entire transaction, John was always available, always forthcoming with excellent advice based on his years of experience, and always willing to put in the extra effort to make this a positive experience for me. I feel lucky to have had the experience of working with him." Lea Lieurance-Turk "Thank you John for your outstanding real estate services for the past 5 years I have known you. You have made my dreams come true as far as selling and buying property."
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