Many homes in many price ranges are still receiving multiple offers.  Thus, a variety of questions may run through your mind if you are making an offer on a popular new listing...

[1]  How much is this home worth?

[2]  How much am I willing to pay for this house?

[3]  Will I win the bidding war?

The challenge in answering #3 above is often not in the answer to #1 but in other buyer's answer to #2.

It's note quite this black and white, but let's pretend that you and the three other buyers who are making an offer all conclude that the home is worth $350K.

You love the house but your budget is capped at $360K.  You offer to pay up to $360K. 

The second buyer won't pay a dime over market value, so they offer $350K.

The third buyer has a budget that goes up to $500K, so they are willing to pay up to $370K for the house.

Depending on the other terms of the offer, the third buyer is likely to secure the contract on the house.

As another example...

Let's again pretend that the home in question is worth $350K, but it needs some updates.

You love the house, but given the need for some updates you are not comfortable paying more than $350K.

The second buyer offers $340K because of the need for updates.

The third buyer is super handy and will make all of the updates themselves and has plenty of cash to spare for supplies, etc., so they offer to pay up to $360K.

Again, depending on the other terms of the offer, the third buyer is likely to secure the contract on the house.

In any given multiple offer scenario, you must remember (as a buyer) that other buyers might be able or willing to pay more than you.