What is Best and Final Offer?
In real estate terminology, a best and final offer refers to a planned buyer’s last and highest offer. A best and final proposal is typically submitted in reply to a bidding war.
A trader who has received several offers may ask either all bidders or the top bidders to provide their best and final proposals. This type of offer presents the most agreeable terms the buyer is willing to offer the seller for the purchase of the property. In some multiple-offer conditions, the seller will ask that the possible buyers submit only one offer that is their best and final offer.
A best and final offer in phases of government contracting is a vendor’s answer to a contracting officer’s demand that vendors submit their last and most winning bids to secure a contract for a specific project. Best and final offers are provided during the final round of negotiations.
Government entities are generally mandated to accept vendors and suppliers who offer the lowest reasonable prices for the requested services and products. The acquisition process might weigh other aspects such as the security and abilities of the vendor in addition to the final offer price.