Will we have to overpay?
You will have to pay more than anyone else is willing to pay at that moment in time. When in a multiple bidding situation, your Realtor won’t know the purchase price associated with the other offer(s) but they usually know approximately how many offers are expected.
Your Realtor will show you comparable sales and can find out how many offers those homes received.
Many factors go into determining an offer price. The biggest being how perfect the home is for and how long you intend to stay there. If your intent is to stay in the home for many years and are facing a multiple offer scenario don’t mess around. You are in competition and will lose out (over and over again) if you don’t put your best offer forward.
Buyers usually get nervous when making an offer in a competitive market. If a number of buyers want “your” house it will likely have the same appeal when you go to sell the home. Competition isn’t fun but it is not necessarily the worst thing either.