Houses selling for more than appraisal value seems to be common in the last couple years. The market is so overheated that people have to do it just to get a house. You just have to decide how much you can afford & how bad you want it.
Property values are going up so fast that overpaying a little may not be all that bad. If you will be in it for a long time, then it may not matter all that much.
We finally bought another house after looking for a couple years this last summer. It worked out good for us. We thought the people who bought our old house overpaid. However, looking at Zillow, the house is valued 7 or 8% more than they paid for it 6 months ago.