862 Carter Street

862 Carter Street has been listed for sale.  Seems the listing agent is trying something new(old, been done before). This 2/2 with 1509 square feet, $315,000, is listed as “Home to be sold to best bidder Sunday night. sale with minimum undisclosed reserve price. All bids conditional to owner acceptance”

What does that mean?  Well, apparently they will be accepting bids up until Sunday sometime.  It is stated in the MLS that there will guidelines at the house, which will be open from 12-5 both Saturday and Sunday. In my opinion what they are trying to do is, get a buying frenzy (hopefully) and make sure that the buyers submit their best offer. They are probably hoping that they get a higher price for the home, with buyers knowingly competing with each other.

This may backfire on them.  In this market I would say a lot of buyers do not want to be in a multiple offer situation. And, even if they get a bid they accept, if the buyer is getting a loan it will most likely have to have an appraisal, and if it is too high the appraisal might come in lower than the purchase price.  That could cause problems with the buyer’s loan.

The bottom line on this, is if you are an interested buyer.  You check out the home, check out the comparables for the home, and make an offer on what it is worth to you.  Do not take into account others might be competing with you.  You might end up paying more than a comparable house would cost.  And keep in mind this is not an absolute auction, seller does not have to accept any offer.