Overbid

To submit a bid for something, such as a contract, property, or item at an auction, that is excessively high or more than its actual worth or the price other bidders are willing to pay. It implies misjudgment of value, aggressive competition, or a strong desire to acquire the object or opportunity, potentially leading to financial loss or disadvantage. The overbidding may be intentional, driven by a strategy or error in calculations. The action emphasizes a disparity between the offered price and a more reasonable market price, or perceived value.

Overbid meaning with examples

• During the frenzied art auction, collectors seemed caught up in the moment, and several wealthy individuals overbid on a relatively unknown artist's work, pushing the price far beyond its estimated value. This led to much surprise at the price paid for the work. It highlighted the volatile nature of art markets.
• The real estate developer, eager to secure the prime waterfront property, overbid on the land by millions, failing to fully account for potential environmental regulations and development costs. Consequently, the project was plagued by setbacks and cost overruns, severely impacting profits for the developer.
• In the competitive bidding war for the software company's contract, the startup, desperate for a win, overbid the multinational corporations by a significant margin, ultimately winning but losing their entire profit margin in the process and causing financial strain for the company.
• The company, blinded by ambition, overbid on acquiring its competitor, underestimating the target company's hidden liabilities and the true synergies. The resulting merger proved disastrous, burdening the acquirer with debt and integration challenges.
• At the charity auction, emotionally attached donors, hoping to help the charity, overbid for unique items in the hopes of supporting the charity and bidding past their budget by several times. This generosity, while beneficial for the cause, led to individual financial sacrifice.