After hours of research and house tours, you’ve found it: an investment property worth bidding on in Indianapolis.

Now the only question is: how much should you offer?

An increasingly popular option is to overbid. Between January 1st and February 15th of 2022, over 5,897 homes sold for $100,000 or more above the asking price. In addition, over 80% of Millennials said they would overbid in a recent survey. At the same time, home sales are down as the housing market contends with high prices and mortgage rates (deterring buyers) but low inventory (favoring sellers).

Is there ever a good reason for real estate investors to overbid?