Knowledge is power.
Before making a purchase offer, learn as much as you can about your local housing market and the homeowner's motivations for selling.
Ask questions about the sellers, such as why they're selling, how long the home has been listed for sale, how soon the seller needs to sell, the mortgage balance, how much the seller paid and any defects in the home.
As the buyer, you're in the driver's seat, so obtain all the knowledge you can.
Get the knowledge about the Local Market, Financial Knowledge about how much you can spend and the personal knowledge about what is your alternatives?

Be Ready for Alternatives:

If you feel, that the house is perfect for you, then it might end up in paying the price thats asked. Be pragmatic and start negotiate.

Do the possible first and leave the impossible till later.

Everything in real estate is negotiable. Negotiation is an art.Be ready to give up something to get something.

Dropping Your price will always attract more buyers. But usually they are the ones looking for the bargains,who will tend to make even lower.

Strike when the Iron is hot. Real esate is a competitive field in all aspects, If you dont act quickly, someone will win it.

Go directly to the buyer / seller.

Succesfful negotiations are built on trust. Make you as a trustable and Reasonable person. It gives your opponents the hope to close the deal.

Just because,its write down does not mean its true. Ask why and get the Correct Answer.

Hapy Negotiation!!!