Many buyers are mislead into believing that this is a buyers market because of the depressed economy, news media hype about foreclosure bargains etc. True it is a depressed economy, true, there are many foreclosures to choose from...but it is those two things that have created the new market that I call a "Bank Market".
With most of the bargains being bank owned or short sales...homebuyers mistakenly believe they can get a good deal by the normal standards which I will call "normal bidding"..which goes something like this....you see a house you like..yet you need to think about it (if you think too long...it is gone) and then you decide to bring everyone you know to the house to help you decide (by now several offers are on property)..then you decide to bring a contractor out to help you determine repairs (fruitless efforts because by now the property is part of a bidding war) and then you call your Realtor and say "hey I am ready to put an offer on that property". The offer you feel should be 20% lower than asking price (after all they told you it was a buyers market) and you ask for closing costs and oh you need five days to do a inspection. Then you are told it is a complete waste of time because there are nine offers on the same property and they are calling for the highest and best offer. You decide to jump in and offer asking price...(gee)....someone really should clue buyers in on how to get a bank owned property.
When the Bank place a property on the market.....and if it is a good property at a good price and let's not mention in "move in" condition....buyers better race to put an offer on it...but wait buyers....here's another tip..don't fall in love with the property yet....wait....go to your Realtor and ask for the comparables so you can put the right offer on the property....if the price is way under what it is worth...and you really want this property...you should bid accordingly and you might end up the winner......after all this is a Bank Market.