There’s a fine line between wishing something were true and denying the reality of what actually is true. When buyers face reality, even when it’s painful, it allows them to make an action plan for getting the best possible results with the resources they do have —or a plan for getting more resources.
Ultimately, only you as the buyer can decide how much you can offer on a home. I can advise and provide data to help frame the decision, but you are the be-all, end-all decision maker. Buyers who opt to make a lowball or often times at-asking offer in situations where they are virtually guaranteed to run into high levels of competition are setting themselves up for failure.   
As your agent, it’s important to depend on the data in these situations. Poor decisions by buyers most often result thanks to a lack of education about the situation. In these times both you as the buyer and myself as your agent need to exercise patience. 

3. Wishing Prices Weren’t Going up so Fast

Here’s the deal: when prices were flat or falling, you as a buyer would (understandably) stressed at the prospect of buying a depreciating asset. Now that they’re ascending, it’s not at all uncommon to see buyers upset and complaining about that as well.  But the moment escrow closes, that price will be added to the comps in the area that can either increase the value or decrease the value accordingly. 
Rising or prices and a recovering market might be just what is encouraging you to buy, which may make it harder for you to get everything you want.   Prices go up based on the economy, the job market improving, and people feeling more optimistic about the future. If many of these other things might not be materializing, that wouldn’t be so great either.
Wishing prices weren’t going up so fast contributes to a costly denial that prices aren’t really what they are. This can cause you to make low-ball offers and waste your precious time on homes you can’t compete for within in your budget range, all while the market is appreciating —and that’s how you can get priced out of the market, right under their nose.
Don’t let your dreams fall prey to this costly wish-based pitfall. Keep in the know on how prices are trending throughout your house hunt, and use that knowledge we see through static's to power your decision-making about what price range to house hunt in and what price to offer for target properties.