What Is a Best and Final Offer Process in NYC Real Estate?

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What is the best and final offer process in New York City real estate? We will demystify this topic in the following video. My name is Nick at Hauseit. We are the largest For Sale By Owner and Buyer Agent Commission Rebate company here in New York City established in 2014. So, let's get started.

A best and final offer process occurs when a property experiences a tremendous amount of demand and simultaneous offers around the same time. In this instance, a seller and a listing agent may decide to cease bilateral negotiations with each party and instead call for what's called a best and final offer submission process. In a best and final offer process, all bidders and interested parties are invited to submit or resubmit their best and final offer terms to the listing agent by a certain deadline.

Once this deadline has passed, the listing agent and the seller will review all of the offers and elect to move forward with a specific buyer. The listing agent and the seller may also identify one or two offers to be considered as backup and those would be utilized in the event that the individual whose offer is accepted backs out of the deal for any reason. It's important to keep in mind if you're buying a co-op that a best and final offer process is involving much more than just your particular offer price. With a co-op, a holistic approach to an offer is very important because of the fact that the co-op board approval process matters equally when weighted against other things such as the offer price itself. So, in other words, a seller of a co-op might not necessarily accept the highest offer, if they're more comfortable with a buyer who's offering might be lower but whose financials are ostensibly more in line with what the co-op might want to see in a purchaser.

Furthermore, a seller might not accept the highest offer if that highest offer has unattractive contingencies or if the second highest offer isn't that far away and perhaps it's all cash. If you're involved in a best and final offer process, it's also important to recognize the fact that there are no legal rules or regulations that a seller and a listing agent must follow. Procedurally speaking, this means that it is possible that a seller and a listing agent might even try to renegotiate with the highest bidder. They might even try to make the highest bidder pay more or they could go back to the second and third place bidders and see if they would be willing to increase their offer perhaps because they don't like something about that first and highest offer. So, ultimately it's the sellers call on how they structure the process, but in the abstract the best and final does essentially mean in theory that a seller will receive all of the offers by a certain deadline, analyze them and choose one to move forward with and of course the terms of that transaction would be the ones as presented by the purchaser. If you are in a best and final offer situation, you're probably looking at a very desirable type of property price point or in a particular neighborhood that's very hot.

In recent years, neighborhoods such as Park Slope has been the epicenter of bidding war type of activity and also in certain areas of Queens and very desirable and affordable properties in lower Manhattan as well as in other parts of the city. So, whether or not you're going to be in a bidding war really depends on your price point, the type of property you're considering and the layout. There are so many factors but if you do end up submitting an offer on a property that has a best and final, you'll want to make sure that your offer as organized by your buyer's agent is super thorough and comprehensive and includes everything that a seller will need to look at your offer, evaluate it and to make your offer look as strong as possible.

We hope you found this video helpful my name is Nick at Hauseit, visit our website https://www.hauseit.com to learn about ways to save money when buying real estate here in New York City and if you like this video, do us a favor leave us a comment subscribe or like will greatly appreciate it. Thank you so much!

Save 2% When Buying in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
NYC Buyer Closing Cost Calculator: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/
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