bidding strategy - % over highest ask?

"and also state you are willing to go 5% higher than the highest bid"

That's a recipe for disaster.

I assume this is a joke. And no law protects you.

Frankly this id pretty dumb. Even if there was a law to protect you, the seller could ask a rich friend to put together a ridiculous offer, and provide documentation to prove it. Even if you ultimately back out, so can the rich friend.

Bid 10% below asking if its priced below comps, 15% if its above.

All you have to do is let them know you are serious. They'll run after you once they get that.

You know what we said in the one and only place we were interested? We said here's our bid, let us know once the seller becomes negotiable and/or if someone else bids on it.

That's similar to a "sharp bid" which goes along the lines of I'll offer $5000 above the highest offer, up to a maximum of $900,000.

Here's a little discussion dealing with legalities of it.
http://www.wwlaw.com/july97.htm

Even leaving aside the ethics of such a bid-- and they appear to be unethical, because you're not giving the other bidder a level playing field -- you're leaving out the Fair Housing dimension -- if an interested bidder is elbowed aside by your bid, they're likely to assume that they've been discriminated against, and pursue recourse.

In short, you're not going to find a good seller's agent who would let you put in such a bid.

ali r.
{downtown broker}