If you don't find anything in the newspaper, you can drive around the neighborhood and look for homes that have sold recently. Call the real estate agent and ask for the sale price of the home. If the agent won't tell you, he or she may be willing to talk to your agent. It is important to investigate the fair market value before you make an offer. Even though you may be willing to pay a price out of line with those for similar homes in the same area, the lender may not approve a loan large enough for purchase at that price.
Most loans are contingent on an appraisal.
The seller or the seller's agent will usually tell you about other bids. If there have been few bids, or none at all, you should make an offer lower than the asking price. If there's a lot of competition, you may want to meet or exceed the asking price if you really want the house. After you make the offer, the seller can accept it, reject it or propose a counteroffer with a different set of terms and conditions. Each offer or counteroffer is just a proposal.