With the severe lack of inventory in many markets, multiple offers are still common. When you are representing a buyer and they ask your opinion about how to bid, here’s what to say:
“There are four ways to negotiate in this situation. The first is to make an offer as if there are no other competing offers.

If you really want the house, the second approach is to offer close to asking price.
If you absolutely must have this house, the third strategy is to offer full asking price or slightly over asking price.
The fourth option is to withdraw your offer and see what happens. It’s your choice, what would you like to do?”
By placing the client in control, you eliminate virtually all pushback that you would normally experience in this type of negotiation situation. Furthermore, if your client doesn’t get the house, it was their choice rather than something you recommended.
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