Have to agree with the first hubber - need more information to give a clear answer, but having spent 15+ years in real estate I can provide some general advice.

The key to any successful negotiation is to understand the motivation (or goal) of each party. The seller wants to sell their home at the highest price and the buyer wants to buy it at the lowest price.

Generally speaking, sellers have a higher emotional attachment to the sale of their house and will often be immune to grasping the concept of pricing a home at a price that the market will bear. In other words, they will always want more than it is worth in numbers because their emotional attachment makes it worth more in their eyes. Current market value or appraisal usually bears no consideration in their eyes because their emotions bring more value than is noted on paper....

So understanding that, the next step would be to understand a little more about their particular situation. How much equity do they have in the house, why are they moving, are they strapped financially, and how long has the house been on the market? While it is unethical for a real estate agent (on either side) to share personal information of one party to another (the sellers to the buyers) in order to gain an advantage in negotiations - nonetheless, this is all part of a strategy. Agents will always have a pretty good idea of underlying circumstances of the other party and will tailor negotiations around their knowledge.

Sellers in tough situations have less leverage, which is an advantage for you. The more leverage you have, the harder you can push. As a buyer in this kind of market, you have the upper hand. However, that doesn't mean you should dig the sellers into the ground; nor should it be the other way around.

The best approach in any financial investment is to take emotion off the table. And this is the advice I told every one of my clients. Emotions cloud your judgment and can make for a messy deal - for both parties.

Without the emotion there are only 3 questions to ask:

1. Does the home fulfill our needs, wants and preferences? (Is it the right layout, the right size, good location, in good condition, etc.)

2. Is the listing price in our range?

3. Will the seller sell if for what we are willing to pay for it?

That's it - if any one of those three factors doesn't meet your criteria then move on to another opportunity.

Go into it with the best intentions, examine the facts and be ready to find a better dream home if this deal doesn't go through. It's been my experience that when a deal doesn't go through it's because it wasn't a good match and there was another opportunity right around the corner. The goal is to find the right house at the right price - and for it to be feel like it's a good match.

Happy house hunting!