When is it “ok”to overpay for a property ?

[Rendy Richiez]

Today’s market is crazy!! And sometimes just to Not lose a “good” deal we offer a little more or too much. But is it ok? Is yes when and why? If not, why?

[Dan Maciejewski]

As @Joe Villeneuve said above, you have to define "overpay." 

Some people think overpaying is paying more than someone else is willing to pay.  You can't buy anything others want to buy if that's your opinion, so in that context, you have to 'overpay.'

Some people think overpaying means paying more than asking price.  I have heard people say, "I would never pay more than asking price."  The real estate market is not a retail store.  Asking price is an invitation to negotiate, not shelf price on a can pf peas.

Some people think paying more than appraised value is overpaying.  An appraisal is a tool used by banks to give them some sort of assurance that they are not overextended.  It's definitely not a determination of value.  I can talk about appraisals but this may not be the thread.

All of the above examples are times where it might be okay to "overpay."

A time it is not okay to overpay is when the numbers don't work for you.  Whatever your metrics and numbers are, you have to buy within that box.  You can never break your metrics to force a deal to work.  There are like 37 measures to judge an investment on, so not all investors will have the same needs, but whatever your metrics are, you have to make sure that the purchase fits.