One of the most frustrating experiences for buyers is when they find a great home at a great price. Frequently 
these are Bank Owned Homes priced low to attract multiple offers. The bank gets multiple offers then sends out a multiple offer counter asking each potential buyer to put in the highest and best offer they can.
Buyers love the thought of getting one of those cheap Bank Owned Homes, but when there is a low priced high quality home everyone sees it. There is no secret or special deal and this is the part buyers hate. They want the property, but they do not want to pay a dime more for it than they have to. They ask me what they should pay. I can only tell them what other house like that are selling for, what the current market it like, and provide them with a little psychological insight (like bidding odd figures, coming in a little higher than the round number they came up with, etc). I explain there is no sure thing. I do not know what the other parties will bid and will probably never know. The thought that they might bid high and over pay drives some people crazy.
I try to tell people the true value of anything is exactly what someone is willing to pay for it. If they are emotionally committed to a home they should be willing to pay as much as they think they will have to pay to get it (within affordability). If they pay $5,000.00 or $10,000.00 more than they might have had to (which they will never know) that money has been paid for peace of mind and knowing they have the home they want.
We pay to avoid risk every day. We pay thousands every year for homeowners insurance, auto insurance, health insurance, liability insurance, home warranties, auto warranties, and many other types of insurance. Most of the time we pay more into insurance than we get out of it, but when we need it we need it. 
Now if a buyer really loves a home and no other home will do, is it worth it to over pay by $5,000.00 (and remember you really will not know if you over paid). Compared to the total cost of the home and the length of time you plan to live there it is probably very cheap. Never beat yourself up second guessing what you bid. Think how much you would beat yourself up if you missed getting the dream home by $5,000.00 and have to drive by it everyday on the way to work.
To find your dream home at the right price in the East Contra Costa County, Brentwood CA, Antioch CA, Pittsburg CA, Oakley CA, or Discovery Bay CA please contact me. Or you may search all the available homes on the MLS. For general information go to www.AskGene.info
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