The answer to your question is that much research must be done on the specifics of the home and area market before you can come up with an offer price. If you are working with a buyers agent they should be doing this research for you. He/she will look at recently sold and pending properties that are comparable to the one you are interested in. Based on this info, you and your agent can make an educated desicion as to the market value of the home and where you would like to begin your offer. There are many variables that come into play as some others have said below. A few of these include how long the home has been on the market, other offers (you may not be able to find this out), and most importantly how much you really want this house. Hope this helps you and good luck!