Runner-Up Home Buyer Lament: “But, I Would’ve Gone Higher!”

“Highest & Best,” Defined

One of the more anguished — and totally fruitless — laments Buyers utter in response to the news that they just lost in multiple offers is this one:  “But, I would’ve gone higher!”

Then, they should have.

The way “highest & best” works is . . . pretty much how you’d think.

One round, highest and best vs., say, an auction, where the bidding keeps rising until only one Buyer is left standing (or solvent).

Different Than an Auction

While a Seller adhering to “highest & best” rules may ultimately negotiate improvements to the most attractive of the proffered offers, significantly, they’ll pick just one offer to work with — and reject the rest.

No round #2, no chance to up your bid.

Which means Buyers truly need to come in with their best number, first.

Which in turn is why Sellers (at least in Minnesota) very much like this format.

See also, “Prospective Home Buyer:  ‘The House I Want is in Multiples; What Should I Offer?”



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