On a median-priced home of $405,000, that equates to an extra $7,300 to $17,415. These overbids often include all-cash transactions, waived contingencies and faster closings. There are several reasons an investor might pay more than market value, Malone wrote. It can be a tactic to quickly close on a home, or it could be a speculative bet that the seller has underpriced a property. It could also simply be a lack of local knowledge.