Should You Ask for 'Highest and Best' or Name a Specific Price?
When you're a seller reviewing multiple offers on your home, one of the key questions that comes up is: Do you ask all buyers for their "Highest and Best" offer? Or do you counter with a specific number?
Both strategies have merit, but they serve different purposes depending on the situation. Let’s break down the pros and cons of each, and look at some real-world examples to help you decide which approach is best for you.
Option 1: Ask for Highest and Best
This strategy puts the ball back in the buyers' court. You're essentially telling them: "We have multiple offers. Give us your strongest number and best terms."
Pros:
Encourages competition between buyers
May result in a higher price than you expected
Keeps your options open without anchoring too low or too high
Cons:
Some buyers might play it safe and not increase their offer much
Others may get discouraged or frustrated and walk away
You risk getting back two very close numbers with no clear winner
Example:
Let’s say you receive two offers: one at $500,000 and another at $517,000, both with $8,000 in seller concessions. Rather than choosing between them outright, you send out a multiple counter offer asking for Highest and Best. The $500K buyer bumps up to $510K, and the $517K buyer goes to $522K. Now you have stronger offers and a better idea of who’s serious.
Option 2: Ask for a Specific Number
This strategy takes more control. Instead of letting buyers guess, you counter with a direct price—say, $530,000—and let them decide if they can meet it.
Pros:
Sets clear expectations
Can avoid low counter-responses
Helps gauge who’s really willing to move forward
Cons:
If the buyer can’t afford the new price, they may walk
May seem inflexible or overly aggressive
If the property doesn’t appraise, it could cause issues in escrow
Example:
You receive an offer at $517,000 and believe the buyer has room to go higher. Instead of Highest and Best, you counter at $530,000. The buyer counters back at $525,000 with no seller concessions. You’ve now improved your net and kept the deal alive.
Which Strategy Should You Use?
It depends on:
How strong the market is
How competitive your offers are
How close the offers are to each other
The financial strength of each buyer
If you're not sure how high someone can go, Highest and Best can bring out their true limits. But if you know there's room and want to avoid a slow back-and-forth, naming a specific number might be better.
Pro Tip:
You can also mix strategies—ask one buyer for Highest and Best, and counter another with a direct price, depending on what you know about their situation.
Need help negotiating multiple offers? Whether you're a seller looking to get top dollar or a buyer trying to stay competitive, I can walk you through the strategy that makes the most sense for your goals.
