Sellers, Beware of high prices from your buyer
Why would a buyer over bid on a unit that is on the market? Because they want to be the winner on the unit. Maybe its priced low or just right and it's getting a lot of action, the high priced bid will definitely get attention.
What are the pitfalls of accepting a high offer?
Depending on how high over the asking price the offer is, it may not appraise. Now what do you do with that offer? You can lower your price to the appraised number, or you can ask the buyer to up their down payment money, or agree somewhere in between.
So what's the problem you ask? Well, here is my opinion.
In Staten Island, the appraisal comes around in about 3 to 4 weeks after the offer is accepted. If you can't agree on a new price with the buyers, the deal my fall apart. So it's BOM, Back On The Market. Now you have lost 3 to 4 weeks of prime marketing on your sale. Did you lose a better buyer? You may never know, and if that "better buyer" had an offer closer to the appraised price, the delay could cost you money.
Now new buyers will ask "What is wrong with that house"? Most likely they will NOT ask if the unit didn't appraise. Savvy buyers are asking good questions, they need to hear good responses. Savvy sellers know what their unit is worth and look at all the factors with the buyers, not just the offering price.