what would you bid for a house in a hot area, that is accurately priced -- updated!

house is listed at 499, which is a bit low as i think they could have listed it a bit higher. comp sales are comparative. Such as 495. if you were willing to go up to asking, what would you start the bid at? keep in mind it's a HOT area. don't think I should bid asking since i am afraid it will drive the price up more. but if i am willing to go up to 499, what do I start the bid at without getting shut out?

updated!
Offered 495 and they accepted our offer!!!

thanks for the advice!! Hoping the inspection goes well.

Message edited 8/2/2014 7:31:32 PM.

Re: what would you bid for a house in a hot area, that is accurately priced (or even priced a bit low)

Honestly, if the house is priced to sell and in a hot area, I would bid at least full asking.

I just sold a house in Wantagh Woods that was priced to sell and staged nicely. It was also in a price point with a high demand (under $500K, which is rare for houses in good condition with amenities like basement, garage, etc. in that neighborhood). I advised my buyers to bid full asking (I think they actually went $1K above, because it was asking $439K and they offered $440K). There were ultimately multiple offers and we went up $5K ($6K over asking) and got it.

If it's a hot area and priced well (and new to market), I would anticipate multiple offers, so you have to go in strong. There's no guarantee that you will get a second chance. Often, listing agents will go back to everyone who submitted an offer and ask for "best and highest" offers, but not always. And if you put a strong offer forward, you will start out in a favorable light in the seller's and listing agent's eyes, rather than someone who starts low and may be viewed as not as serious a contender.

Also, in a multiple offer situation, it's important to not only put forward a strong number, but a strong offer altogether. So you want to be upfront with all terms (financing, timeline), have a lawyer and an inspector ready to move forward (and let them know). As an agent, I also want to "humanize" my buyers in this situation -- talk about who they are, where they work, how many kids they have, why they love the house, etc. Sometimes I even have my buyers write a letter to the sellers explaining who they are and why they want the house. Unless it's a builder or an investor, most sellers care about who they sell the house to.

Good luck!

Message edited 8/2/2014 9:50:38 AM.

Re: what would you bid for a house in a hot area, that is accurately priced (or even priced a bit low)

Full price.

Do you want to lose the house over a few k?

They may get multiple offers which will drive the price up. The house is worth what someone (May or May not be you) will pay for it. If you go in too low and they have multiple offers, they may not even negotiate with you.

Re: what would you bid for a house in a hot area, that is accurately priced (or even priced a bit low)

Re: what would you bid for a house in a hot area, that is accurately priced -- updated!

updated, we got the house at 495!!! Hoping inspection goes well!!!