I am being cautious or foolish?

[Drew Nashmy]

So, another Monday, another unsuccessful trip to the Sheriff's sale! I use an algorithm of multiple factors to determine my "buy" price for our properties. One example from today was a max bid of $100k, which I bumped to $105k. I bid up to that number, and the property sold for $106k. Knowing that there was no way to know if I had continued bidding where it would have ended up, am I being cautious or foolish?

[JD Martin]

Well, your bottom line number has to be your number. It should have some basis in reason and logic, but (using your example) if you can't make it work beyond 105 then 106 is too much. And there's no way to know if it would have ended up at 116 or 126.

But you have to make sure your numbers are reality. If you are looking to max out at 105 when that's the floor to get in, then you will be looking for unicorns.