There are a number of factors that will play into what you bid for a home. The first is the market you are operating in. In the market that I work in (Greater Boston Suburbs) we have seen homes this spring, and through the fall market have multiple bidders. In this case a home is clearly priced correctly or underpriced in the market and you will probably have to bid at or above the asking price to 'win'. If the home has been on for a while the reason is usually because the owner or real estate agent has over priced the home. If this is the situation you are facing you need to do you research - look up comparable properties that have sold in similar locations with equal conditions and/or upgrades. Try to develop an understanding of the market so that you can determine the fair price for a home that will protect your investment. Once you have decided what you believe is the fair market value for the home you can choose to bid that price and say take or leave it, or you can bid under that price in order test where the seller's stand. In any negotiation there are risks of 'offending' the seller, particularly in real estate where a seller is emotionally attached to a home - this can tank a negotiation or lead to hiccups later in the process. Whatever you decide to do, be resolute in not bidding above a fair market price. I also recommend finding a real estate agent who has extensive knowledge of the local market with whom you can speak in order to determine the fair value of the home. In addition, most agents have extensive negotiation experience. Though, if you do decide to go at it alone the best thing you can do is educate yourself.