What a sad commentary on ethics...... Bid the price up so you can most certainly be assured of getting the contract with your high price, and then feel okay about having duped the seller, his agent, the lender, etc. Isn't it tactics like this that got us into the current mess we're in? This ploy is only "real" IF there is sufficient money down that the appraisal is not an issue, and if there is a clause indicating that buyer will remain at this price regardless of appraisal. Otherwise, it it meaningless and deceptive. Bank owned properties are being listed at very low prices just to encourage multiple contracts and highest and best price. And this works for cash buyers and investors. But what about the people who need a home and this may be the only way for them to ever get into the housing market? Investors will fix it up, flip it for a profit, and now the new price is out of reach for those people. Somewhere, somehow, the American dream of home ownership should be within reach of more of us. When greed stops being the motivator, and when we are back on track with a "normal" housing market, not to mention other arenas currently being worked on, perhaps this once great country can recover it's morals and it's strength.