REO Multiple Offers - What to Bid?

[Aaron Hollingshead]

I bid on a property that had 6 offers on it last week.  The bank will choose the winning bid tomorrow and I am considering bumping up my offer a bit.  The question I am wresting with is this...At asking price, it's an absolutely incredible deal.  I bid more than 20% over asking price which is still an incredible deal.  If the asking price had been the amount of my current bid, I  still would have felt great bidding 10-15% more.  

When you're in this position, do you try to make your offer just enough above asking to get a a steal on the property, or do you offer significantly more even though you might not need to in order to ensure you get the deal?  In other words, go for the home run and potentially get outbid, or go for the base hit?  Thoughts? 

[Roy N.]

@Aaron Hollingshead

In this business, you make most of your money at the time of purchase.  If you have done your analysis, you will know the price above which the property will not meet your requirements of return.  

You make your offer at, or below, this price and never go above it.   You most certainly do not want to bid - particularly against yourself - on a property.   In a multiple offer situation it is far better to allow someone else to "get" the property than to overpay for it.