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Banks Asking "Highest/Best" Offers for Foreclosures?

I'm looking to purchase a foreclosure property which the bank is asking $259,900 for. The bank is asking to get pre-approved by SunTrust and is also asking for highest and best offer. I already got pre-approved, sent my offer in for $265,000 because I really want this property. I will give 10% down. Need some help understanding the highest/best offer thing and am I in good shape with my offer?

Public Comments

1. The bank always want the best and highest offer on a bank owned property. In some instances the bank will hold up several offers hoping to get a better offer. They are trying to get top dollar for the non-performing assets that is on their book. You could be in good shape with your offer, you should make contact with the bank to see what phase your offer is in with the bank. If you have a real estate agent then perhaps you should have this person contact the bank to determine where your offer stand. I hope this has been of some benefit to you, good luck. "FIGHT ON"
2. Highest and best is a term used typically when there are two competing offers. Your offer may blow theres completley out of the water, but they must be fair, not disclose any of the information of the opposing offer to the other party (this would be you in this case), and ask both to bring their highest and best offer. Now the highest offer monetarily might not be the best offer. They could possibly have a higher downpayment, a more favorable closing date, etc. I personally have worked with over 600 buyers in my career. Here is my advice...put in your HIGHEST, and BEST offer. If the offer you put in is your highest and best you have nothing to worry about. Basically you don't want to be in a situation where you find out your offer wasnt taken over an offer of 270k, then turn around and say "Damn, I was willing to go 275k and could of gotten it!" You want to walk away and say that you put the absolute highest offer you would put for this house in (that is if you really want it). Also if you want another piece of advice I would suggest researching an escalation clause. Now a lot of people (especially banks) WON'T entertain this. Mainly because it is very hard to understand, and the explanation gets confused sometimes. I will make it very simple and tell you why it might work for you. An escalation clause is a statement that says "Mr. Seller my official offer is 265k but in the event that an offer comes in that is HIGHER than 265k my offer will increase 1K over the bonafide written offer, and is to not exceed 275K" Now you can change those numbers to be anything you want, but basically your saying that you will automatically go 1k over a written bonafide offer up to but not to exceed 275k. This allows you the leniancy to know that if a bid comes in higher, your offer will automatically increase, it's 100% legal, and could probably set your mind at ease. I hope I helped! What I would do is ask the bank what would be favorable to them. They may say we need the most money you could put down, or we are looking for a closing date on x day, or they may say nothing and say put in your highest and best.