A home seller may ask the real estate buyer to provide their Highest and Best Offer when the seller has received multiple offers on their home for sale. By doing this, the seller does not have to pick one offer to accept or counter and gives all buyers an equal chance to make the highest bid on the property.
In the past, the request for a Highest and Best Offer was predominantly seen in negotiations for the purchase of bank owned foreclosures. The Houston real estate market currently has a shortage of home listings. Many home sellers are receiving multiple offers on their home listing and are requesting a Highest and Best offer from the home buyers.