Together with your agent, you need to identify how the home is priced in comparision to recently sold properties, thus establishing what it may appraise at for purposes of securing your loan. Furthermore, you need to then establish what it is worth TO YOU. Don't waste too much time, as you may then be competing with other offers.

You have received some good advice from Sonya already here. I will tell you this....I never make decisions for my clients because I do not take responsibility for their decisions. The fact of the matter, as you stated, is that you may not get the opportunity to increase your offer. You won't be able to go up if the seller accepts a different offer. You should review the most recent sold data that includes homes somewhat similar to the subject property. Many homes are listed these days below market value. We have sold several homes recently where there were multiple offers from multiple buyers. You give the indication that that is a concern of yours. Most listng agents will inform cooperating /selling agents when there is a multiple offer or multiple buyers showing an interest, but not always. Nor are they required to do so. Although I have no ability of knowing the circumstances of this particular property, review the most accurate information you can, and make your best decision accordingly. If you have looked at a number of homes and this home appeals to you to the extent that you believe it merits a higher than list price, make your best offer out the gate. I think it's good to make that offer with the thought you have in your mind right now...."can we live without getting the house?" Only you can answer certain questions. If this is the house for you, I hope that you are the fortunate buyers. Best wishes.

"If you have an "exclusive buyer agency agreement with a licensed realtor, realize my response on this consumer medium is for sharing opinions and information, but never for the purposes of interferring with another broker's relationships"

Kay Pearson, CRS
Associate Broker
Real Estate One - Max Broock
31 S. Main Street
Clarkston, Michigan 48346
248-860-0366
kaypearson@maxbroock.com

LTL, what does your Realtor say it comps out at? Perhaps the $100,000 asking price is still too high. You can always come up in price but it is difficult to come down once you make an offer that is too high. Please keep in mind that the home will have to appraise if you are getting a mortgage. If it doesn't, both of you will have to reconsider the agreed upon price.
Good Luck

The value of a home has nothing to do with its asking price. You should be formulating your offer based on comparable solds in the neighborhood. What have homes that are similar to this one selling for in recent weeks/months? That is the info your appraiser will also use to value your home when the bank send them to determine if the house is worth the amount you want to borrow. It doesn't matter what the home seller thinks its worth or what you think its worth only what it is actually worth in todays market. Hopefully you are working with an ABR who is looking out for your best interests and is giving you advice based on market facts so that you don't "lose out" on this home. I wish you luck!