I am assuming you have an agent who is working for you as a buyer's agent. That agent, like stated below knows the market and will be able to pull you a list of properties that have recently sold that do compare to the property you wish to purchase. If no recent sales can be found your agent can check what is currently active, and what has expired and usually be abl to determine what is a fair range.

No agent is going to tell you what to offer. Why? Because if you go in at a price that is less that full price and are asking for seller help, you may loose the property. I give suggestions after I show the buyer what has sold and what the price range is currently on those properties. If the buyer needs assistance in closing, there are a lot of ways a contract can be structured without insulting the seller.

There has to be a meeting of the minds. The value a buyer sees in a property is going to be on an emotional level. The price at which the seller sells his property is going to be on a need and/or fair value based on the advice of his agent.

Is there ever a time that the two can not meet. Absolutely. If that is the case, then the buyer needs to be ready to move on to another property. If the buyer is not willing to "accept" what the seller is willing to give in a compromise, then it is not going to happen.

Buyer's need to be realistic and understand that they are buying a home that is going to provide them the life style that they have been looking to find. It must be the best match for them for the price they can afford to pay. If that can't happen, the buyer needs to "settle" for less in their search or be willing to pay the price.

The goal is for a win-win situation. The buyer should be thrilled with the home and the seller should be happy that he/she has found the perfect buyer to enjoy the home.

An appropriate offer amount is determined the same way in this market as in any other. Typically you have your own agent representing your best interests who will pull recent sold info for homes comparable to the one you are interested in purchasing. If you are obtaining financing the house must appraise for what you are hoping to borrow so paying what you think it is worth doesn't apply (unless that is less than its appraised value). I wish you much luck!

Offering what you feel the house is worth to you may insult the seller and cause you to end up paying a higher price for the house. Going on your "gut" feeling is never a good idea. The best way to determine what to offer is to use comparables that have sold in the neighborhood within the last 6 months. The recently sold comparables will get you a pretty good idea about what other similar homes are selling for. I would not waste money on doing an appraisal before you actually go into contract with the seller. Let's say the seller does not accept your offer after you have spent hundreds of dollars on a appraisal- then that would be a total waste of money.