Weird bidding situation in NJ : RealEstate

Found a small investment property for 148k, 1050sqft. When we went to go see it, another agent with clients came shortly after us. I mention that to indicate there was a lot of interest in it. I think.

Over next 2 weeks a bidding war starts. We offer 135k based on comps, and are outbid to 143k. We go up to 144k and are outbid to 149. We give 150k and are out bid to 155k. When asked if we want to counter, we say no. Weird how counter bid went up by 5k+ each time?

3 days later we get told seller wants to sell to us because they dont think home will appraise for 155k. I ask why us when she had a buyer willing to pay more. My agent says seller thinks there will be a smoother transaction with us. The other buyer apparently had a contingency but was willing to remove it (wanted to sell another property first).

I ask my agent straight up if she thinks there was no actual counter bids and the seller was making it up. Keep in mind at 150k, the home is being sold as is. A comp 3 doors down sold last week for 155k completely flipped.

Two issues:

  1. The whole thing smells fishy, why would seller come to us when she has someone bidding higher and is willing to remove their contigency?

  2. I think the bidding got out of hand and now with a clear head I think 150k is too much compared to comps.

Can I lower my bid back down? Should I just say no longer interested.

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