That is where a buyer's agent can really come in handy! When not using an agent, most people will base their offer on what they have seen themselves in the market. Usually no one just looks at just one house before making an offer, so after looking at the competition, a buyer can usually tell if the house is fairly priced or not. Others will use an appraiser and base their price off what the appraisal comes in at - expect to pay anywhere from $300-500 to have a licensed appraiser do an appraisal on the property.
Another alternative is to hire a buyer's agent, who can run comps and advise you on the market. You will have to either pay their commission at closing, or negotiate it into the offer. A good buyer's agent will often save you more than what their commission is. Whatever you end up doing, good luck to you!... more