When you’re in a fast moving market like that of Austin, Texas and especially Central Austin you’ll undoubtedly run into multi-offer situations. There are many tactics that can be utilized to assure you get a property, and most of the time it means paying more for a property than your really want to pay. A lot of the times the winner of a multi-bid negotiation ends up paying more than the property is really worth. This is an interesting article at Realtor.com that attempts to explain all the factors that go into a multi-offer transaction.
One very important thing to keep in mind is that an “offer” is about more than just the purchase price. A seller looks at all aspects of the offer including terms like closing date, financing, special provisions, etc. It’s not unusual for a seller to go with a lower purchase price offer if he/she feels that the terms are more favorable.