You need to establish your highest/best offer now, before you're outbid. You're currently sitting at around 92% of asking price. Most homes (at least in my area and based on my experience working with real estate clients) sell for around 95% of asking price. Sometimes more, sometimes less. Unless you're planning on paying cash, you're better off countering with your highest and best if you're outbid and still serious about the property. A few thousand dollars/euros isn't going to make a significant difference when it comes to your mortgage payments. If your budget is so tight that you can't afford to keep bidding higher, you need to find a house that you can afford (this one isn't it!).
Is it always best to start with a low bid? Not necessarily. If you're in a highly competitive market where sellers have plenty of buyers to choose from, a low bid isn't going to be taken seriously and is likely to be passed up. Likewise, if a house JUST hit the market and you low ball the seller, they're more likely to blow you off and wait for something better to come along. You may also want to avoid nickle and diming the sellers. The more offers you make, the more the sellers are going to think they can push you around. If you're outbid, counter with your highest and best. Don't waste the seller's time or yours over a couple grand.