People should understand that the price is not the sole basis for writing an offer -- look at all the comps, the market activity. In this market of low inventory where there are multiple buyers who want to take advantage of the still-low interest rates, it is nearly a given that there will be multiple offers.
The overbidding and multiple offer actually started early 2012. And many buyers were stunned to discover the market has turned from a buyer's market back to a seller's market.
Hopefully you are aligned with a realtor who is not merely experienced but also knowledgeable and resourceful who can strategize with you when you are ready to write an offer under these conditions.
The area you are looking in is North Fremont which has good schools, but is not as highly rated as the schools in Mission or Irvington (High Schools).
You will find the prices higher in the Mission area with equal competition for each home as it becomes available in the market.
Low inventory and pent-up demand are the cause and without any new sources of inventory on the horizon, it looks as if it will be this way for a bit. So many people were waiting on signs for a positively moving economy, that once it hit, it was a scramble for homes.
That said, it is very much worth your effort to make sure you hire a well-versed realtor that knows the area, knows the level of competitivness and can make the appropriate offer for you (too low and you will not get a response, you want just enough to get a counter offer if possible).
For first-time buyers, it can be that much more cirtical to have that realtor advocate there for you - if you would like me to make a referral, I would be happy to do so.
Please feel free to call or email me with any questions you may have about the King Avenue area or any other area here in the East Bay. Best of luck with your offers!
We are seeing both extremes;
Pricing LOW to create multiple offers, and, stupidly pricing high, thinking that people will accept or offer a little lower.
You really should ignore the LISTING price and have your Realtor do a CMA to determine the Market Value.
The appraisal normally will not let you buy much above M. V. anyway.