By pulling up recent sales in the area that were similar in style, size, #bedrooms/bathrooms, etc, you can decide on a price range. Digging a little deeper into these comparables, you look at their condition, improvements, seller conditions, and of course the current market condition. You want to also compare list to sales price ratios for the past 3-6 months in that area to determine if homes are selling over, under, or at list price. Take resale value into consideration and consider items other than price, such as seller credit toward closing costs, repairs and warranties. Ask yourself what's the most you would pay? Then decide on the top price you are willing to pay, and plan to offer less than that amount to leave yourself room to negotiate. You can always increase your offer and with being in a buyers market currently it will also allow for more bargaining room on more than just price.