Paying over asking price can be a good deal

Buyers benefit most when staying in home long term

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Given the recent negative press about the state of the residential real estate market, it's understandable that buyers would be reluctant to offer more than the asking price. Yet, some buyers are finding that a list-price offer is not enough. Multiple offers are making a comeback in some markets. A couple from San Francisco, who had resolved to pay no more than the list price, is now resigned to do so for the right property. They were surprised to find that there were multiple buyers seriously interested in each of the first three listings they considered buying. The one they chose to offer on received three offers. The winning bid was for $10,000 more than they offered. Exhausted and disappointed from the experience, the San Francisco couple realized that if they wanted to buy a good house in their first-choice neighborhood, they would have to be prepared to compete. Some buyers in this situation would decide to wait to buy until there are more listings and fewer buyers. A downsid...