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What Is a Best and Final Offer Process in NYC Real Estate? - YouTube
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What is the best and final offer process
in New York City real estate? We will
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demystify this topic in the following
video. My name is Nick at Hauseit. We
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are the largest For Sale By Owner and
Buyer Agent Commission Rebate company
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here in New York City established in
2014. So let's get started. A best and
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final offer process occurs when a
property experiences a tremendous amount
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of demand and simultaneous offers around
the same time. In this instance, a seller
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and a listing agent may decide to cease
bilateral negotiations with each party and
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instead call for what's called a best
and final offer submission process. In a
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best and final offer process, all bidders
and interested parties are invited to
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submit or resubmit their best and final
offer terms to the listing agent by a
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certain deadline.
Once this deadline has passed, the
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listing agent and the seller will review
all of the offers and elect to move
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forward with a specific buyer. The
listing agent and the seller may also
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identify one or two offers to be
considered as backup and those would be
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utilized in the event that the
individual whose offer is accepted backs
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out of the deal for any reason. It's
important to keep in mind if you're
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buying a co-op that a best and final
offer process is involving much more
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than just your particular offer price.
With a co-op, a holistic approach to an
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offer is very important because of the
fact that the co-op board approval
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process matters equally when weighted
against other things such as the offer
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price itself. So in other words, a seller
of a co-op might not necessarily accept
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the highest offer, if they're more
comfortable with a buyer who's offering
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might be lower but whose financials are
ostensibly more in line with what the
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co-op might want to see in a purchaser.
Furthermore, a seller might not accept
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the highest offer if that highest offer
has unattractive contingencies or if the
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second highest offer isn't that far away
and perhaps it's all cash. If you're
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involved in a best and final offer
process, it's also important to recognize
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the fact that there are no legal rules or
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regulations that a seller and a listing
agent must follow. Procedurally speaking,
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this means that it is possible that a
seller and a listing agent might even
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try to renegotiate with the highest
bidder.
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They might even try to make the highest
bidder pay more or they could go back to
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the second and third place bidders and
see if they would be willing to increase
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their offer perhaps because they don't
like something about that first and
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highest offer. So, ultimately it's the
sellers call on how they structure the
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process, but in the abstract the best and
final does essentially mean in theory
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that a seller will receive all of the
offers by a certain deadline analyze
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them and choose one to move forward with
and of course the terms of that
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transaction would be the ones as
presented by the purchaser. If you are in
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a best and final offer situation, you're
probably looking at a very desirable
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type of property price point or in a
particular neighborhood that's very hot.
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In recent years, neighborhoods such as
Park Slope has been the epicenter of
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bidding war type of activity and also in
certain areas of Queens and very
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desirable and affordable properties in
lower Manhattan as well as in other
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parts of the city. So, whether or not
you're going to be in a bidding war
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really depends on your price point, the
type of property you're considering and
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the layout. There are so many factors but
if you do end up submitting an offer on
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a property that has a best and final
you'll want to make sure that your offer
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as organized by your buyer's agent is
super thorough and comprehensive and
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includes everything that a seller will
need to look at your offer, evaluate it
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and to make your offer look as strong as
possible. We hope you found this video
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helpful my name is Nick at Hauseit,
visit our website www.hauseit.com to learn
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about ways to save money when buying
real estate here in New York City and if
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you like this video, do us a favor leave
us a comment subscribe or like will
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greatly appreciate it. Thank you so much!
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