These answers are both really good answers. If you are working with an agent, before placing an offer on a house view other homes in the area that are similar to the one you are looking at for comparison. Also, the condition of the home and the amount of updating the home may have or that has been completed also come into consideration. Also have your agent do a radius search of all active and sold homes in the area. Agents can only comp in the subdivision or with in a quarter mile of the home for the most accurate comps. Also, it is the most recent â€œsoldsâ€ that will give the most accurate comps as well. Remember that a home will have to be appraised by an appraiser if you are going to be financing the home. Also, keep in mind that here in Northwest Indiana; sellers have been hit with the market, but not as bad as the nation has. Also, sellers that are newer to the market have adjusted to the market conditions. If the home has been on the market a while then check to see if the seller has reduced already. Plus, homes can sit in this market for 100+ days, that is not an indication that it is over priced or anything is wrong with them, just a sign of the times. Working with a REALTOR you connect with will really help you when buying a home and determining what a good offer would be on the home you are interested in. Happy Hunting and I hope you find your bargain.