Local agent has a listing and cut the price in HALF. She did this to start a bidding war since there is so much inventory in the price range of this house. She's holding all offers until Monday. My guess is there will be several as this is an MLS listing and everyone under the sun will know about it via auto-filter email listings like I have.

I went ahead and submitted my offer at full price, "as is", walk thru inspection to confirm condition only, close in 5 days or less with cash. It's in really good shape and has all the right stuff: 3 bed, 2 bath, central HVAC. Property is listed at $25K but easily worth $10K-$15K more than that as is, but why start high? ;-)

My guess is it would rent $700-$750. Maybe $800. Needs no work and could rent tomorrow "as is" for this price.

Agent has my offer in hand and said she'd contact me if I get out bid. I'm counting on getting outbid.

For those of you who have won bidding wars and NOT overbid....any tips?

myob.... yeah, that won't work. This is a KILLER DEAL, and both the agent and I know this. She's not even submitting any offers until Monday. ;-)

Laura, yes, I've done that. They know this is cash and I can close in 48 hours or however long it takes title company to do the work. I already did the "I can close quick, no contingencies other than a walk thru to confirm it looks as good as the pics, etc". In short, all the normal advantages are GONE since this is an MLS deal where there will be multiple bidders.

Btw, my guess is bids are going to climb on this one, as there are plenty "I can close TODAY" investors with cash in my town. This is a dinky little $30K-$40K house. My guess is the seller will hold out for a higher price since there really isn't any reason why multiple other parties aren't just as qualified with the details as I am.

I think the odds are small I'll win this one, but just in case I want to be sure I'm not OVER bidding. My max price is already set, but I want to try to get it for less.

I know the last time the words "this is our final offer" came out of my mouth, they didn't budge from the offer we were countering. (Bank foreclosure that had sat vacant on the market for 2 years due to being overpriced. They finally came down into Reasonable Territory, but we were trying to make it More Reasonable.)

We waited about four days, changed our mind, and said, "Okay, we'll meet you at $x."

The response was, "Oh, that was then. Now the price is $x + $4k."

We gritted our teeth and we paid it.

As a licensed contractor, my eyes are wide open at time of viewing. A couple of times I saw major defects that weren't disclosed. So when I submitted my bid, I made sure that both the listing agent and selling agent were made aware of these issues. My offer accepted everything in "as-is" condition with only "title insurance" a must to close. Also my offers were cash only with a quick closing.

The selling agent then had to disclose the defects and get a waiver from all of the other bidders. So since these "deals" were bank owned from foreclosures, I had to give an acceptable price that the seller would accept my offer now compared to waiting for all of the others to agree to the defects.

One defect here in California was the property having a septic system, not hooked to the sewer system. Banks want the septic systems to be certified and California has no Certification for septic systems. So most buyers can't get a loan, easily....

Other defects are older roofs with asbestos, cracking plaster walls/ceilings with asbestos. Lead Paint, Mold or sinking foundations, water intrusions.

In a situation where I know there will be multiple offers I like to give my best offer to start with and when they ask for highest and best just stand pat.

It's amazing what a buyer will pay for a house when theres a bidding war. The investor will pay a certain amount and not a penny more. HOWEVER, a BUYER/OWNER that will live there making the house their home will pay a higher price and out bid all investors.

Robert J of CA makes an extremely valid point about the inspection. If there is a major issue you see, a major defect in the house, then it will benefit you, IF you are the highest and best offer. It sounds like you will not be the highest bidder due to the condition of the house. That is the "PICTURE CONDITION" at this point until the inspection is done on the house.

IF this realtor and owner really wanted to make it a bidding war have a pre-inspection on the house and have it available for the potential buyers. MAYBE they know of a defect issue and will let the chips fall where they may...

...otherwise at this point its a free for all bidding war on the house.