Exactly this. We got a house in hot market last Spring at 17% over asking. Did we overpay? Almost certainly. Did we lose out on 5 bids prior by "only" overbidding 5-15%? Yes. In a sea of exuberant buyers, you have to be the most exuberant. Not a great feeling at the time, but we plan on this being a keeper, and the timing was right for us.