In my career as a realtor I have seen a lot of things. Seen things in properties that I really shouldn't mention here or care to relive again for that matter. The one thing though that truly bothers me, is watching buyers get desperate and way overpay for a property just to get it. I get it. You lost out on multiple properties becuase of multiple offers but if you sit down and think about it. Is it really worth it to way over pay for something that you are just going to loose money on when you go to sell?
Craziest I've Seen
A few years ago I had an awesome couple for clients who were looking for a penthouse condo on Chicago's west side. We had been looking for a few weeks and finally found the one place they were looking for all along i.e. it had "character." We made an offer and of course so did another buyer. Both of us we asked to give out highest and best. We pulled out all of the strings and went $15K over list price (about as high as you could justify for this place). We were completely blown out of the water. The other buyer came in $25K over list price and waived their appraisal contingency. Meaning, fi the property did not appraise at the purchase price, the buyers would make up the difference out of pocket. Insane! In order to even break even when they go to sell the buyers would have to be in the home for at least 7-10 years JUST TO BREAK EVEN!
Second Craziest I've Seen
Just recently I had a wonderful couple make a fantastic offer on a home. We had lost out on a few places and had to walk away from three others because of inspection issues but this was the place. The location, size, everything was what they were looking for. We came in strong, $10K over list price. I had the buyer and even their eleven year old daughter write a personal letter to the sellers. It didn't matter. Another buyer came in with an escalation clause of $5K over the highest offer and destroyed us. It didn't matter if we went higher they were always going to be $5K higher than us. This is ridiculous in my opinion. They could have done a smaller escalation clause and still won't but they ended up overpaying for this place because they did this.
Moral of the story, it's easy to overpay when you are in a desperate situation. But its never a good idea. Make sure you pay what is the fair value or plan on being in the property for a very long time.