Don't forget that it's in a realtor's best interests to stir up the pot about all this foreign money. "Bid higher or the Chinese will outbid you!!".
Apparently there was a scam in Vancouver, BC where a local realtor group was busted doing this exact thing.[1] They took a couple of their Chinese employees and had them wander around expensive homes with a story about buying up a ton of real estate.
Very smarmy. And they weren't the only ones doing it.
The other approach is figure out what the house is worth to you. Figure out what your max is before you start bidding and don't go above it when the bidding starts.
Good approach. To elaborate, bid the lesser of your value or market value. Always. If you feel the least bit of pressure, or feel there's any shenanigans going on, walk away.
Deeds are public record so you can always check to see if a single person/entity is buying up many properties in an area. Sites like whydontweownthis.com are making it easier to check as well.
Apparently there was a scam in Vancouver, BC where a local realtor group was busted doing this exact thing.[1] They took a couple of their Chinese employees and had them wander around expensive homes with a story about buying up a ton of real estate.
Very smarmy. And they weren't the only ones doing it.
[1]http://www.cbc.ca/news/canada/british-columbia/former-mac-ma...