These are the six issues to address if you are working on real estate as a first step:

Compare the prices of similar homes in the neighborhood before choosing a price.

How much did the seller pay? This question helps to know if values have gone up or down since the seller bought the home.

How much does the seller owe? If the seller owes more than the asking price, then you are looking at buying a short sale.

How much have similar homes sold for in the neighborhood? This is your best indicator of value.

How many offers has the seller received? If there are multiple offers, your offer will need to be strong to survive the competition.

How long has the home been on the market? You might negotiate a discount if the home has been on the market for 60 days or longer.