How to Win a "Best and Final" Offer Campaign in 2026

Winning a "Best and Final Offer"

A "best and final offer" (BAFO) is a term used in negotiations, in buying real estate, this is where all interested parties are asked to submit their absolute best and final offer by a certain deadline. This signifies the end of the campaign negotiations and is a crucial stage for buyers.

If you are in the property market, the Best and Final Offer (BAFO) selling strategy along with Auctions are two of the popular ways to sell properties in the Melbourne property market. Most people are familiar with open auctions whereby all buyers gather at a set place and time, and openly bid for the property. But did you know the "Best and Final Offer" (BAFO) is a type of auction?

Yes, the Best and Final Offer sales method is a different form of Auction. But what exactly is a "Best and Final" Offer? And what should you do to win this?

What is a "Best and Final" Offer?

The "Best and Final" Offer can also be known as a closed bidding or closed auction. In this method of auction, bidders are asked to make their formal offers, usually in writing, without knowing who the other bidders are and what their competitors' offers could be. Some real estate agents may also called it:

• expression of interest (EOI); or

• sealed bidding; or

• sealed bids; or

• silent auction; or

• closed bid auction; or simply

• closed auction

You can also look at the Best and Final Offer as a tender process, where interested parties submit their offers without knowing what other buyers are offering, usually within a short notice. Sounds complicated? Yes it is, and it is one of the techniques aimed at creating panic and anxiety, thereby forcing buyers to think with their hearts and make irrational offers for the property.

Why are "Best and Final" Offer Auctions used?

During a typical sales agent's sales campaign, the agents need to gauge the level of interest in the property, and to get a feel of what potential buyers are prepared to pay for the property. Agents are usually good at finding out what buyers are prepared to offer.

However, there could be times when buyers either have no idea or refuse to disclose any budget information. So, in order for the agents to get a good feel of the level of interest, one cheeky way is for the vendors and / or sales agents to call a 'Best and Final Offer auction', and bring forth a scheduled auction. Holding a BAFO auction is also a quick way to sell the house (if the price is acceptable) and/or to force buyers to disclose where their interests sit. But those are not the only reasons why a "Best and Final Offer" auction is used.

Some other reasons for using the "Best and Final Offer" closed auction include:

• the agent has genuinely received an acceptable formal offer from a buyer

• there are many interested buyers who refuse to disclose where their interests are

• the agent and/or the vendor wants to gauge the market interest

• the agent and/or the vendor wants to shorten the campaign

• the agent and/or the vendor wants to bring forward an auction without officially cancelling it

Is the Best and Final Offer Auction Fair?

Some agents believe this is transparent, as the offers are not subject to any negotiations (in theory). In practice, the fear of missing out (FOMO) will force buyers to bid against themselves, stretching their own "best offer". Inexperienced buyers will usually try to squeeze in a few extra dollars to try to "outbid other buyers".

Thus, this Best and Final Offer process is not always transparent, as we will see in the next section.

How do Best and Final Offer Auctions work?

There are no right or wrong ways to run this Best and Final Offer process. The sales agent is free to determine the exact process or change the process as and when they wish.

In the Best and Final Offer Auction process, this is what usually happens:

1. Vendor and Agent decides to call for a Best and Final Offer auction

2. Agent informs all buyers who have indicated interests in the property

3. Agent tells buyers they are accepting offers and interested buyers are to put in their "Best and Final offer"

4. Agent gives buyers a dateline (can be as short as 4 hours) by when all written offers must be submitted

5. Agent then presents all offers to the vendor.

What happens next is where it gets interesting and can vary between campaigns, agents or vendors. The inconsistencies in processes and often poorly communicated instructions, is also where the Best and Final Offer process creates the most controversies, anxiety and angst. This is where the BAFO process is not as transparent and fair as the sales agents would want you to believe.

The selection process may take one of the following paths:

• Vendor may simply select the highest offer and end the sales campaign

• Vendor may choose the best 2 to 3 offers, especially if they are very similar, and start another closed auction (or BAFO) process with the bidders

• Agent may choose to give the highest bidder, a second chance, if their initial offer is not considered good enough

• Vendor may choose not to select any offers, if they believe none of the offers are attractive. The campaign will then continue to its scheduled public auction or end date.

Problems with Best and Final Offer Auctions

As with a typical property purchase and property auction, Best and Final Offer auctions are usually very emotional and stressful. This is intentional, as emotions, anxiety and stress are what cause buyers to think with their heart, and the resulting fear of missing out (FOMO) will usually lead buyers to stretch their offer, usually ending up with overpaying. Agents know that. Inexperienced and unprepared buyers always fall into this trap. However, experienced buyers and professional buyers agents would usually have no problems managing this properly for their clients. If you can afford it, always consider seeking the assistance of an experienced Buyers Advocates, to ensure you receive the appropriate advice for the property.

Best and Final Offer auctions are usually:

• very overwhelming for the inexperienced buyers, such as first home buyers or buyers who have not done sufficient research and due diligence

• lacking in transparency

• conducted with urgency

• conducted with poor levels of communications

While this might seem OK, it is no longer considered a fair auction in 2026. Interested buyers can miss this auction, if the agents do not know they are interested. Or if the agents believe they have enough interested buyers, they may stop informing other less promising buyers, due to time constraints.

How do you Prepare for a Best and Final Offer Auction?

Treat your preparations for a Best and Final Offer Auction like a preparation for an Open or Public Auction. The tips given in our "How to win at Auctions" [link] can be used in this BAFO auction as well.

Generally, to perform your best in the "Best and Final Offer", you need to:

1. Do your due diligence.

Doing your due diligence is critical to preventing yourself from buying a property that doesn't suit you. Understand what you want from the property, why you want the property and your plans for the property. Knowing the real property market condition (not the one which sales agents want you to know) will help you understand the market demand for that property, in that particular area. Remember, every property is different, even if they are next to each other.

2. Know the real market price of the property

Most buyers mistakenly trusted the price guide in the Statement Of Information (SOI) provided by the sales agent. While the idea of the price guide (SOI) is to give you an indication of the price of the property, it usually does not mean the auction will end within the price range indicated in the guide. This article will explain why Statement Of Information is best read with a pinch of salt..

You should always do your own homework.

If your research is very different from the price guide in the SOI, always feel free to ask why the agent thinks it should be so different. There could be a gold plated toilet in the house. Or some 1kg gold bars embedded in the bedroom. Or maybe there are some termite infestation, or a history of flood and/or water damage. However, more often than not, you are likely going to get a standard sales agent reply "that's based on sales data. We cannot predict how much buyers will be prepared to pay at the auction"...

A good independent buyer's advocate who knows the area, location, street, buyer demand, supply situation, buyer demographics, property characteristics, will be able to confidently give you an idea of the auction price range. At Concierge Buyers Advocates, we are confident our appraisal will give you the most accurate price guidance of the property value. Our property appraisal service comes with a price guarantee. If the sold price is more than 15% different from our appraised price, we will refund the cost of the appraisal. No questions asked.

3. Determine your offer

This is where you have to decide what price you should offer for the property. No one can do this for you, but if you engage our buyer services, one of our buyer's agents would be able to work with you to help you:

• Assess the property value based on market demand.

• Engage the sales agent.

• Know your serviceability.

• Determine how much you should pay.

• Ensure you have sufficient funds for the initial deposit.

• Ensure you have the appropriate ways to pay the required deposit.

• Determine the absolute best price you should pay for the property.

The Best and Final Offer Controversies

If you've been following this article, you would have guessed, what happens next, gets murky and controversial. While the sales agent may indicate that you only have that "one chance to make the best and final offer", in Victoria, the agents or the vendors might choose to further negotiate or give everyone "one final chance to review your offer". This means "one final chance to improve your offer". This is intentional. The message you will receive is usually constructed to make you panic and second guess your offer. It almost always hint that "you are close enough but not good enough. Let me help you win this. You only need a bit more... ". You might decide to improve the offer, or if you've already submitted your best-best-best offer, and the property does not deserve more, choose not to improve the offer.

Now, bear in mind, unlike a open auction, you do not know who the other bidders are, and the bids they had submitted. Your bid might already be the highest, and the vendor and selling agent might just want to try their luck to extract a few more dollars from you. There might not even be any other bidders, and you are bidding against yourself. Interesting, eh? If you have done your preparations well, you would know what the likely scenario is. Our buyers agents would usually be able to advice based in their experience and insider intelligence on the property location.

Does the best offer in a Best and Final Offer Auction always win?

Short answer: usually yes. But not always.

It depends on the motivations for this Best and Final Offer auction. Remember, one of the reasons of holding this Best and Final Offer auction is for the vendor and/or agents to gauge the level of buyer interest. They may choose not to select any of the offers, and let the sales campaign run its course, and choose to proceed with the scheduled public auction.

Usually, a genuine Best and Final Offer auction will almost always result in a sale. But unlike a public auction, it may not always be awarded to the buyer with the best offer.

Can you submit a Conditional Best and Final Offer?

A Best and Final Offer auction is treated like any other standard written offer, unlike a open auction. IE, you CAN submit a conditional offer, which includes typical conditions such as building and pest inspection clauses, finance clauses, or any other clauses you need or can dream of. And you should always submit a conditional offer if you're not confident, to protect your interest. It doesn't matter if the sales agent isn't pleased. You're within your rights and rules of the game to submit ANY offer, including a conditional offer. There's nothing worse than winning the auction, then discovering you do not have sufficient funds to pay, or if the house is termite-damaged. You'll be legally required to proceed with the purchase, if your unconditional offer is accepted, or you risk heavy penalties.

It is in the vendor's own interests to consider all offers and conditions when reviewing and selecting the offers. They may select the offer with the most suitable conditions, even if it is not the highest price.

In 2026, your conditional offer can include something as simple as "Subject to satisfactory due diligence". And you do not need to disclose what due diligence you are doing, to give yourself the most flexibility. We always to this.

We always tailor our offer to the situation, our winning offers for properties are often conditional offers and often not the highest offer received by the agent.

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How to win a Best and Final Offer Auction in Australia in 2026?

So, you have been contacted by the agent, telling you they are holding a closed auction, and you have been invited to submit your best and final offer by X date and time? Here is what you should do...

How to submit an offer in a Best and Final Offer Auction?

If you have been contacted and informed by the vendor agent that they are accepting offers for the property and you need to make your "best and final offer", they should also inform you when the deadline is. You should always ensure you submit your best offer before this deadline.

If the agent has not told you how or when they want to receive the offer, ask them. Make sure you ask how should you submit the offer and when the deadline is. Some may accept offers in an email. Some may have a formal offer form or an Expressions of Interest (EOI) form, that you have to fill in, sign and submit. Whatever it is, make sure the offer reaches the agent BEFORE the deadline. The agent is not supposed to accept any offers after the dateline. Not even if you are 1 minute late.

Best and Final Offer Response Template

While there are no standard offer emails, format or template for the Best and Offer (BAFO) response, some agents might provide a paper form or email template. In any case, do not be surprised if there isn't standard format. If it is provided, use the selling agent's preferred template, but if not, your best and final offer response should include these critical information, as a minimal:

• Your name

• Your contact details

• Your best and final offer price for the property

• Any conditions you want to include

• Preferred settlement date or period, typically 60, 90 or 120 days in Victoria.

Note: Some agents or Expression of Interest (EOI) forms may ask for more information. Make sure you understand what is expected, and only provide information relevant to the offer. In this day and age of data privacy concerns and breaches, you don't want to provide too much information, as you do not know when your data will be stolen or misused. That said, if you believe the requested information is / can be discriminatory, you do not have to include as well.

What happens after submitting your Best and Final Offer?

Submitted your offer? Now it's time to wait -- and keep your fingers crossed. You'll get the outcome in due course.

What happens if your offer is accepted?

If your Best and Final Offer is being considered, the agent will let you know the next steps. You might need to be prepared to "review your offer" (aka "improve your offer"), or you might win it without any further dramas.

If your offer is the winning offer, the agent will usually prepare the formal contract of sales for your signature, and you will need to pay the holding deposit. If your winning offer is a conditional offer, it's time to start working through the conditions. Know when these datelines are. Get those building and pest inspection organised, get that finance process started, or get any other due diligence processes done. And as they say, the rest is history.

But what if you do not hear back from the agent?

Generally speaking, if you have not heard from the agent within 4-6 business hours of the deadline (usually half a working day), your offer is 99% not being considered. If you have done your due diligence correctly, and you can truly say you've genuinely submitted your best offer, you know you have done your best. The property is not meant to be yours. There is always a better one somewhere. But you will have to go through the same process and buyer's anxiety all over again. It could be months or even years before you find another one. Chances are, in a rising market, you will be paying more for the same property or start looking in less desirable suburbs, the longer you spend searching.

Should you call the agent?

If you have not heard from the agent after 4 hours, call and ask for an update. If you get a vague reply, or non-committal and iffy reply, chances are, they have selected another offers. That's usually the bad news. But the good news is, because they have not outright rejected your offer. Your offer is their back up offer. If the other offers fall through, you might just win the closed auction or you might be called to "improve your Best and Final Offer". The fact is, in a hot market with lots of keen buyers, or if other offers are represented by professionals such as buyers agents, you are highly unlikely to win it. We'll explain why.

Why do Sales Agents seem to Prefer Buyers Advocates?

As buyer representation gets more and more common in 2026, sales agents have admitted to secretly preferring to work with buyers agents because of the high quality, well-researched offers received from experienced buyers agents. Experience is important here. New buyers agents are almost as clueless as novice buyers, and sales agents can identify them easily. New buyers agents would be easy prey, and they are usually a waste of time.

Sales agents, however, know clients from experienced buyers agents are well qualified, genuinely market ready, and fully committed to the purchase, which makes the process smoother for both sides. The only thing stopping the sale is the vendors' "yes". And thus, sales agents are usually more motivated to work with experienced buyers agents to close the deal. Thus, more often than not, a well represented offer from an experienced buyers agent do allow buyers to avoid paying the top price.

No Buyer's Remorse

If you have done the right due diligence, your Best and Final Offer should be your very best for this property. You should not have any "buyer's remorse" if you won the BAFO auction or if you don't, you would not have regretted not offering an extra $500. Get one of our professional buyers agents to manage your offer, if you are not confident. Do not be that buyer.

Can You Counter a Best and Final Offer?

Usually No. However, there might be ways around this, to achieve similar results. It all boils down to experience of the buyer's agent and how the sales agent runs this Best and Final Offer (BAFO) auction. Remember, in most (not all) situations, it is in the agent's and seller's best interest to allow interested buyers a second chance to review (and improve) their offers. So, when the agent gives you the opportunity, make good use of it. Remember, in the BAFO, the agent CANNOT disclose who and what the higher offer is.

And, you do not have to make your decision on the spot. You can always request a few mins to privately discuss your offer with your partner, mortgage broker or lender, before confirming or revising your final offer. It also does not mean that you have to improve your offer, if what you have offered is what you believe is the best, and you would not regret if the property were sold for $500 more.

Every agent, property, circumstances are different. Your experienced buyer agent will help you dissect the situation and explore ways of getting the property you want.

What Is the Real Estate Industry's Secret to Winning the Best and Final Offer?

The real secret to winning a best and final offer is the credibility of your offer. As you'll know by now, anyone can submit any offer for a property. It is the sales agent's job to vet the offers, and remove dodgy offers. Yes, contrary to what most believe, sales agents to ignore unqualified offers.

Usually, your reputation in the industry and / or reputation with the agent is a major factor determining if your offer will be short-listed for considerations.

The majority of buyers do not have a lot of track record buying properties, and thus, they lack the reputation and experience to manage the Best and Final Offer professionally. This inexperience is shown in the way your offer is put together and presented to the agent.

How Can You Improve the Credibility of Your Offer?

One of the most effective ways to improve the credibility of your offer is by engaging an experienced buyers advocate to assist with your purchase. Feedback from real estate sales agents in the industry suggests that having a professionally represented offer significantly enhances your chances of success. And from our experience, this seems true. Our professionally prepared winning offer is often not the higher offer on the table. Our successful offers are often between $10-30k below the highest offer. That is the value of professional representation.

What do Buyers Advocates Charge for the Best and Final Offer Process?

Buyer’s advocates like us, do not charge full fees for such services. With a small fee of $3k-$5k, you gain a credible, well-prepared offer backed by professional insight into the property’s value—potentially saving you much more in the long run. It might seem counterintuitive, but the facts speak for themselves.

Take the guesswork out of the process, strengthen your offer, and improve your chances of securing the property of your dreams.

Professional Help to Buy in Best and Final Offer Auction is Available

If you're still uncertain with how the Best and Final Offer auction works, not confident with your preparations, or just want the confidence to buy the property, you might want to consider engaging our buyer's agent to:

• help you manage the whole process,

• deal with the agent/vendor and

• work out the best way forward with the offer.

Our Melbourne based Buyer's Advocacy is here to help buyers navigate the Best and Final Offer Process and help prevent buyers from overpaying. Our Complete Buying Services and Purchase Only plan covers all purchasing scenarios, BAFO, negotiation, auction bidding service, etc. It is also popular with hands-on property buyers who are either unable or not confident at negotiating or bidding at property auctions. We help buyers prepare for purchase and buy their properties with confidence. And over 95% of our clients buy their properties in 2 months.

Get in touch, find out if our services are right for you.

Other References:

• How to determine market value of a property.

• How to win at property auctions in Melbourne.

• How can buyers advocates can help you beat the market.

• Get in touch with Melbourne Buyers Advocates.

More home and investment property buying news and tips here.

- updated Feb 2026 with latest strategy