Almost all the houses coming on near me are priced like this. I hate it; it almost makes me not go and see them because I refuse to get involved in a bidding war when prices are already inflated. I would have no idea what to offer - I saw someone on here suggest 10-20% over as a starting point which is just ridiculous when houses are already overpriced and we're beginning to see things sitting there for a while and/or being reduced. 10-20% over would make houses that were previously well within my budget now unaffordable.
A friend offered the asking price in the same situation, and it was accepted, but the market here in Cornwall is mad and I am competing with out of county cash buyers. I don't stand a chance.