In the last couple of weeks, I've had a number of choice listings enter the market at what I figured was a good market price based on my evaluation. Within hours of some of these listings, I had multiple offers, competing buyers, higest and best, etc.. Some of these offers went above asking by as high as 25%!
1st scenario: The sellers didn't take the strongest offer with the bottom line (yes they were well qualified with an 80% downpayment) They took the second best which was all-cash but 25K less!
2nd scenario: Countered the best well rounded offer, but in the counter was an offer amount reduction! Good for the buyer and their agent.
I had to confirm with the AM making sure that the reduction wasn't a typo before moving forward. Apparently the reason why banks are doing this is many buyers overbid and then when it comes time for loan approval, can't make value/work the price down for whatever reasons. Thoughts on this? Is it healthy for our market to keep things lower, even if somebody is willing to pay a higher premium?