Buying for over asking price is done all the time. I take it you know little about housing markets, sales, or any of this.
I've been involved in 6 house transactions in the past 2 years (a good friend is a realtor, 2 of the transactions involved properties I was moving, 2 were friends, 2 were relatives.) 5 moves f the 6 went for more than asking by quite a bit, for the exact reason that the realtor, wisely, knew the market prices and put them up decently below rates. This causes a rush of buyers who then start a bidding war. All were private buyers. This is standard practice.
