Should I buy this house???

[Mike Williams]

So I am in a situation I have never been in before. Buying in Charlotte, NC and the market is very hot right now. I have made multiple offers on listings and have been outbid on all of them, even when offering the asking price. I saw a house that is exactly what I am looking for and offered the list price and they accepted. 188k. Now the appraisal has come back at 175k. I have been advised not to go over the appraisal price though it seems to be the Charlotte market is moving so fast that a house purchased 6 months ago could sell for 10 to 20k more today. I figured I would be willing to go 3k out of pocket at 178k but the seller is sticking with 179k, we haven't even done an inspection and I am already out appraisal cost and 500 due diligence if I walk. Paying above the appraised value makes me a little uneasy as it is so half of me says just walk but the other half says if I skip and wait the market will just continue to go up and I might as well get it while houses are still reasonably priced. Please let me know your thoughts on this. 

This is a home I will live in and I'll rent my current house out. Link to house... http://www.estately.com/listings/info/4700-easthaven-drive