C’est depends. Bien sur. No, really, of course, it depends. If the seller’s asking price is:

• above market value,
• there is no competition,
• you are not in love with the home,
• you cannot afford the home,
• your market has oodles of inventory,
• or any of this combo,

Then, probably, yes, you are over-paying. If the asking price is:

• Under or at today’s market value,
• There are multiple, serious buyers,
• Your market is competitive, without a lot of inventory,
• You love the home and can envision living there for at least 3-5 years,
• You can afford the necessary price,
• or any of this combo,

Then, no, you are probably not paying too much. Context is all, remember? Dian Hymer, a former columnist for the Chronicle, has this to say on paying over the asking price. Read article here.