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Rapid growth of demand for various wireless communication services has led the industry and the researches to investigate on a new generation of telecommunication systems. One of the main objectives in designing and developing these systems is to provide the mobile user with a robust connection to different networks so that the users can move freely between heterogeneous networks while running their computing applications. Handoff is a process, which maintains a mobile user's active connection as it moves within wireless networks and vertical handoff considers handoff between different types of networks or otherwise stated between different network layers. In this paper a location estimation technique in multitier (overlay) networks with application to use with vertical handoff algorithm for optimization and network conditions improvement is proposed. First the concept of proposed algorithm for location estimation is discussed, then we talk about the simulation environment and some optimizations for our pattern classifier, finally a performance analysis demonstrates that significant improvement can be achieved from the proposed technique and its optimization.