Just listed a home that got 5 offers after 5 days on the market. Did we under price it? No, every offer came in within 5K of list price..well except for one. And the comps were even lower.
You see people use Escalation Clauses sometimes to beat another offer here in Northern Virginia. This was offer #5. He knew I had a stack of offers and I told him we were not inclinded to wait as we had some good ones. This buyer clearly wanted the house, as they hustled to get the offer in earlier than was originally planned for them when I told the agent we wouldn't wait.
This offer came in at 5K under asking price, escalating up to 5K over.
Huh? I literally asked the agent if it was a mistake. If you are willing to pay 5K over, just start at list price.
It was otherwise a really good offer, but that strategy but a bad taste in the seller's mouth.
When I asked the agent why he did that, his explanation really made no sense.
In Northern Virginia, as a buyer, if you are facing 5 offers on a new listing, odds are it's going for list price or over. Don't mess around with this strange tactic that will make the seller think you are weird and could possible cost you the house.