Highest and Best Offer
Highest and best is a request from a seller (or their agent) asking all interested buyers to submit their strongest offer by a specific deadline. This typically happens when a property has received multiple offers and the seller wants to give every buyer an equal opportunity to compete. The seller then reviews all offers and selects the strongest one based on price, terms, and likelihood of closing.
How highest and best works
The seller's agent announces a deadline (often 24-48 hours) for all offers to be submitted. Buyers are encouraged to submit their best price and most attractive terms. The seller reviews all offers and may accept one outright, counter one or more, or reject all. There is no obligation to accept the highest-priced offer — terms like earnest money amount, contingencies, closing timeline, and financing type all factor in.
What makes an offer strong
Price: Higher is better, obviously. But not always the deciding factor.
Earnest money: Larger earnest money signals commitment and financial capability.
Contingencies: Fewer contingencies reduce the seller's risk of the deal falling through.
Financing: Cash offers are strongest. Conventional pre-approved is next. FHA/VA offers are weakest because of appraisal requirements.
Closing timeline: Faster closing appeals to most sellers.
Proof of funds: Providing bank statements or a lender letter with your offer shows you can perform.
For wholesalers
Highest and best situations are challenging for wholesalers because your offers typically include an option period (for your disposition window) and lower earnest money. To compete: offer a clean cash close with short option period, increase your earnest money to demonstrate seriousness, or bring a buyer who is pre-committed to the deal before you submit the offer.