The market always establishes value. The question I have is: Was the property fully exposed to the market? I've been working in market where multiple offers over asking are usual. This is great for Seller if the offers are managed well, and our board has offered seminars that include the topic of managing multiple offers.
I've had as many as 22 offer on one property, and from experience there are usually a group of offers at around list price, another few well over, and often one or two that set new benchmarks for price in a hot market.
Face it: Buyers set the price, and in a market with short supply, and high demand, it's often a good strategy to list on the low side, hold off showings until all the photos, virtual tour, and other marketing for the first open are set. I've often held a REALTORÂ® preview on Friday, and held opens Saturday and Sunday to fully expose the property to the market before accepting offers. Our board allows this if the Seller requests this in writing, and it's worked well for many top agents in my market area.
In my opinion listing on the low side is only a risk in a slow moving market where it's uncertain that there will be more than one ready, willing and able buyer.
Some great strategies for winning in a multiple offer situation when representing a buyer include, having a pre-inspection prior to the offer, having few, or no conditions and a very large certified fund deposit in hand when presenting the offer. I always encourage my Buyers to offer their very top price right from the start, as often times in multiple offer situations there is no second chance to negotiate.