Bidding war against ourselves?
We are in a competitive market, where most houses in a quiet neighborhood with a yard go very fast (regardless of needing work or not) and for anywhere between $100-200k over depending on the specifics. We found a pretty basic 3 br/1 bath on the smaller side that needs cosmetic updates and a new kitchen (my father in law is a contractor so that's no issue for us), but otherwise is in a quiet neighborhood, great schools and good structural condition. It is being sold directly by a realtor who bought it for relatively dirt cheap (probably around $550k), most likely from an estate or something of the like. They cleaned it out, did zero work and relisted for $659k, which is still underpriced for the area.
We tried to jump the offer deadline because the realtor said they would entertain offers before the deadline. We offered just over $700k, waived mortgage contingency and inspection for informational purposes only. The realtor did get back to us saying that they got two offers a day early and ours was the higher one. They also said they would've accepted our offer if it was cash and that they'll just wait and see what else comes by the deadline.
We have a chance to resubmit today and raise our offer, but I'm struggling and thinking we are bidding against ourselves. Our realtor thinks a cash buyer could swoop in, but my guess is that they would have already if it was above our original offer and even if they do go above our revised offer, we weren't going to win anyways (the ROI really doesn't make sense for them to offer $100k over and then try to flip it again). I know waiving the mortgage contingency isn't exactly the same as a cash buyer, but is it weird they made that comment? We're thinking of increasing our big by another $10k instead of another $30k. Opinions welcome!