There are few areas of real estate where buyers need outstanding representation more than in the handling of multiple offers. Sadly, some buyers are working with licensees who lack the knowledge, caring, or both to protect them from paying more than necessary.

Take the price you plan to offer and add a ballpark figure for the items above. Compare the total to the highest sold prices in that neighborhood for a completely remodeled home of approximately the same size. Offering less than the highest sold figure is, normally, appropriate.

It is possible that prices will continue to spike for a number of years and your superior offer today will look good at a later time; however, I would not count on that.

Many folks who paid what was then a high price in 2003 through 2005 might have been able to sell for more in 2006 and early 2007. Nevertheless, those who did not sell may, today, have negative equity.

Although there is no formula per se, experienced agents know what has a chance to work or not based on the number of offers, but there is a problem. Few contracts today are presented in person to the seller and his agent. Almost all are emailed. This makes it much trickier to know how many offers actually are involved.

Finding out this number is where agents might be letting their buyers down. Some salespeople submit an offer that is supposed to be based on a certain number of bids without knowing the true figure.

These instructions should include a statement that your agent make arrangements, in advance, to contact the listing agent right before the deadline to submit offers and determine the actual number of contracts that came in up to that point and/or are still expected.

To be most cautious, your written instructions can state that you do not want your offer sent in unless your agent has contacted the listing agent and found out how many other contracts there were. These safeguards are unlikely to work if the property is a short sale or REO.

What buyers do not know is that the best listing agents will often give the top two or three offers an opportunity to adjust. Usually this means increasing the price. Competent selling (buyer's) agents ask the listing agent how he/she will be handling these situations.

I have seen many times where a buyer, who probably was not advised otherwise by his agent, paid tens of thousands more than necessary. And the buyer never knew. This is where agent feedback is so important, but is commonly lacking. Make sure it does not happen to you.