Should a Buyer Pay More than the Appraisal in this Market?

I actually advised a buyer to rent in this market!

I was helping a young OSU resident find a home for him and his wife.  Last summer we looked at many properties.  Of course at that time, buyers were in extreme competition for the winning contract.  As I was teaching them the buying process in Ohio, explaining the importance of the appraisal and home inspection, my buyers shared they were not sure how long they would be in Ohio.  An alarm went off for me to ask more questions.  Do you think the value of the property will increase in one year to cover the cash you used to go over appraisal value? They decided to rent and will soon be moving on for a fellowship.  I lost a sale but caring about both my buyers and sellers is my marketing plan.

I Encouraged a Buyer to Offer Over An Appraisal!

I have worked for a family for over a year to find a new home.  They had several needs and wants to find in a home.  We did find a fantastic house, in a prime LOCATION, in Excellent CONDITION and NEAR  chosen schools and work. Did I encourage them to compete in this market?  Several times they shared, “This will be our FOREVER HOME.”