Do multiple offers mean that the property was underpriced?
No; it means the property was priced right. I have alluded to this a couple of times before. When evaluating multiple offers, there are many, many factors that come into play – factors other than price. Closing date, contingencies, requisite timelines, type of loan, the agent’s reputation … I have developed a spreadsheet that helps to remove the subjectivity of the offer consideration process.
Why write about multiple offers in a buyer’s market? The Charlottesville area real estate market is unique. The market it odd. A listing I put on the market last month received three offers in two days. A listing I started marketing nearly six months ago received two offers on Monday. Karma? Luck? Chance? Who knows?
Bottom line – the “best” offer may not be the “highest” offer. Look at the active comps, price it right and make your best offer.