Best And Final Offer

Filed Under »
Dictionary Says

Definition of 'Best And Final Offer'

1. In real estate, a prospective buyer's last and highest offer. A best and final offer is typically submitted in response to a bidding war. A seller who has received several offers will ask either all bidders or the top bidders to submit their best and final offers. This type of offer presents the most favorable terms the buyer is willing to offer the seller for the purchase of the property. In some multiple offer situations, the seller will request that potential buyers submit only one offer that is their best and final offer.

2. In government contracting, a vendor's response to a contracting officer's request that vendors submit their last and most attractive bids to secure a contract for a particular project. Best and final offers are submitted during the final round of negotiations.
Investopedia Says

Investopedia explains 'Best And Final Offer'

1. In addition to increasing the purchase price, in a best and final offer, a prospective buyer may shorten or lengthen the time to close, ask for fewer seller concessions and/or waive contingencies for a home inspection or financing approval. Buyers will make these changes in an attempt to be the most competitive bidder and get the home under contract.

2. A company's best and final offer for a government contract will be its lowest-priced offer with the most favorable terms. By asking for a best and final offer, a government agency may be able to secure a contract at a lower price.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Home Inspection

    An examination ...

  2. Appraisal

    A valuation of ...

  3. Conditional Offer

    In general, an ...

  4. Earnest Money

    A deposit made ...

  5. Closing

    The end of a ...

  6. Negotiation

    A strategic ...

  7. Best Alternative To A Negotiated ...

    The course of ...

  8. Bid

    1. An offer made ...

  9. Counterbid

    A purchase offer ...

  10. Counterparty

    The other party ...

Articles Of Interest

  1. Buying A Home: Write An Offer

    Find out everything you need to know to tackle this major purchase without fear.

  2. 10 Tips For Getting A Fair Price On A Home

    Don't let buying a home bust your budget. Make sure the house you choose is worth the price you pay.

  3. 10 Worst First-Time Homebuyer Mistakes

    These errors could wind up costing you more than the coveted key to your first home.

  4. Top Tips For First-Time Home Buyers

    Follow this step-by-step guide to make your homeownership dreams a reality.

  5. Financing Basics For First-Time Homebuyers

    If you're looking to get your first mortgage, there are many financing options available.

  6. The Complete Guide To Buying A Condo

    A step by step look at everything you need to know about purchasing a condo.

  7. Profit From Mortgage Debt With MBS

    Mortgage-backed securities can offer monthly income, a fixed interest rate and even government backing.

  8. Retirement Living: Renting Vs. Home Ownership

    Here are three simple questions you should consider when weighing this decision.

  9. What You Should Know About Home Appraisals

    Home appraisals are an unbiased way to determine a home's value. Here is what you need to know about obtaining one.

  10. A Tax Primer For Homeowners

    Go beyond interest and find out how mortgage points affect your taxable income.
Sponsored links

comments powered by Disqus
Hot Definitions

  1. Love Money

  2. Shark Watcher

  3. Judo Business Strategy

  4. Dogs Of The Dow

  5. Chinese Hedge

  6. X-Mark Signature

Recommended
Loading, please wait...
See More »
Trading Center