Understanding "Highest and Best”

“Highest and Best" scenarios have become common due to the imbalance between homes for sale and homebuyer demand. When sellers receive multiple offers with limited room for negotiation, we often advise setting a deadline for buyers to submit their best possible offer. The goal, from the seller’s perspective, is to encourage buyers to present their most competitive bids while ensuring fair treatment for all parties.

How It Works:

• Multiple Offers Received: Two or more offers are received without room for the seller to negotiate.

• Announcement: The seller's agent announces the "Highest and Best" deadline to all agents who have shown the property, giving a clear timeframe by which all final offers must be submitted. This period is typically short, often within 2 to 3 days.

• Submission of Offers: Buyers who wish to remain in contention must submit their highest and best offer by the deadline. This includes all terms such as contingencies, closing dates, and earnest money deposits.

• Review and Selection: After the deadline, the seller reviews the submitted offers and selects the one that best meets their needs.

Ralph’s Take

The "Highest and Best" strategy is a dream for sellers. It encourages buyers to submit their best offers, potentially increasing the final selling price. The process is designed to be decisive and fair for all parties. Buyers need to remember that the highest monetary offer isn't always the winner; terms can significantly impact the seller's decision. (More on that in our upcoming newsletter!)

> Read: The timeline of a successful Highest & Best

U.S. Home Price Forecasts for 2025

According to Resiclub's analysis of top housing forecasters, U.S. home prices are expected to rise by an average of 2.5% in 2025. Here's a detailed breakdown of the projections from each forecaster:

• Goldman Sachs: 4.4%

• Wells Fargo: 4.3%

• Mortgage Bankers Association: 3.3%

• Morgan Stanley: 3.0%

• Zelman & Associates: 2.3%

• Fannie Mae: 1.5% 

• Freddie Mac: 0.5%

• Moody’s: 0.3%

Ralph’s Take

Expect steady national growth through the end of this year and into the next. Locally, home prices will continue to rise faster than the national average due to the low level of new construction and the historically low volume of existing homes for sale.

The 10 Most Affordable Lake Towns in 2024

If you're dreaming of affordable lakeside living, a recent article from Realtor.com highlights some of the most budget-friendly lake towns for 2024, including one in New York. These towns offer charming communities, beautiful views, and a variety of recreational activities, all without breaking the bank.

• Rogers City, MI

• Lockport, LA

• Fox Lake, IL

• Albert Lea, MN

• Zapata, TX

• Mentor-On-The-Lake, OH

• Peshtigo, WI

• Bull Shoals, AR

• Forsyth, MO

• Caroga Lake, NY

Ralph’s Take

My grandparents bought a waterfront home on Candlewood Lake in 1968. Spending summers there during my youth, I developed a deep love for waterfront living. If you're interested in finding a lakeside home, let’s chat!

Bruce Willis' Former Home Reduced to $6.5M

Atop one of Bedford's highest points with breathtaking panoramic views of the Croton Reservoir and the Lower Hudson Valley, this 14.4 acre gated and fenced retreat includes a five-bedroom main house with saltwater pool, pool house, tennis court and detached garage with a loft (suitable for studio/office/gym). Read More

Visual of the Week

Seeing Headlines About Foreclosures Rising?

Today, lending standards are much tighter, resulting in more qualified buyers and far fewer foreclosures. The graph above uses data from ATTOM to show how things have changed since the housing crash. We're still below what we’d see in a more normal year. And, if you compare today to what happened during the crash, we’re nowhere near what we saw back then. Read more

Mortgage Watch

Today’s average 30-year fixed mortgage rate remains under 7, at 6.89%

> The rate you may be eligible for can vary greatly from the daily average published via Mortgage News Daily. I use this figure as a proxy for how the mortgage market is shifting.

2024 Summer Real Estate Guides 🌞

Learn the keys to successful home buying and selling with our complimentary real estate guides.

Have any questions? Let me know! As always, thanks for reading, and have a wonderful weekend!

-Ralph