The question of the day is “how much over asking do I have to bid” when there are multiple offers. My answer is always the same. You should pay one dollar less than the amount where you don’t care if the other guy gets the property instead of you.
We agents have no way of knowing which properties receive multiple offers or how many they receive. When there are multiple offers, we don’t know what the other offers are even when our buyers are involved. We don’t know why the seller picks one buyer over another (though it is often a combination of price and terms like deposit amount and closing date). But I can tell you this – multiple offers have become the norm today.
I looked at all 2 bedroom or bigger properties on the MLS that closed since June of 2013. Of 181 closings here are the stats:
- 181 Total sales
- 76 sales for at or over asking
- 44 sales over asking
- Amount paid over asking ranged from $1 to $45,000.
Now, keep in mind that not all of those 76 necessarily involved multiple bidders. I often advise buyers that if they really want a property, and come in first with a strong (i.e., full price) offer, they may put off other buyers. But I found it interesting, nonetheless, at how many deals were over asking. I suspect if I were to repeat this exercise in 6 months, which I will, the results would be even more startling.