I cannot comment on price without knowledge of the property. The other factors in getting your offer accepted are financing terms, length of escrow and contigencies. If the price is over comps there is a good chance the property won't appraise. If you are a cash buyer you will have a leg up. If not, the larger the down payment the better. I would propose the shortest ecrow period and minimize contingencies. The cleaner the offer the better. Hope that helps and good luck.
I think you already know that if the property doesn't appraise for the asking price your lender, if you are using a mortgage (and I really hope you're not...) will ask you to come in with extra cash to cover the difference.
Unless you absolutely must have this property and have the money to over-pay based on current value, look ahead to predict (with some level of risk) if the property will be worth the current asking price in the future. If the property is truly in a great location, someone will take that approach and pay full price.
Of course if there are three other people bidding on the property, maybe it is worth more than you might think.