Does it really work - to offer "$ OVER HIGHEST"?

[Sam Leon]

I kept hearing people saying when in a REO situation, if the bank came back with a "HIGHEST AND BEST OFFER IN 24 HOURS", presumably in a multiple offer situation...that you could offer them $1 or $100 or $500 OVER the highest offer - provided that they can show you that there is a genuine offer for that amount.

Not to mention you are at the mercy of a crazy buyer who is willing to overpay...unless you have a built in contingency that gives you an out.

I assume if you are willing to do that, you are really calling them bluff. If so, then don't increase your offer, leave it.

But let's say you are willing to pay $100 over the highest, would you really write that into the contract? How would you word it?

OK is this just talk?

[Rob K.]

I would recommend that when you make any offer, make it for a weird amount. I can tell you that it works. The last house that I purchased was listed for $39,900. I offered $36,036 cash. After my offer was accepted, the listing agent told me that there was another offer for $36,000 and two more offers that were higher, but had mortgage contingincies. My extra $36 got the deal.

One time I purchased a HUD house that I figured when I walked through that I would buy it if I could get it for $10,000. I thought to myself, "What if someone else offers $10,000?" I offered $10,150. This was a few years ago when HUD posted all of the bids. Sure enough, someone else offered $10,000.

I bought another house from a bank that I offered $12,111. Later, I was talking to a friend that had offered $12,000. My $111 beat him out.

As far as writing $100 over the highest bid, I don't think that will fly. You need an actual number. I've learned from experience that a weird number can make the deal. Think about what you were going to offer and then add a little bit. You will be suprised at how many times it works for you.