After negotiating on many properties I have rules that suit me and do work, they may not suit everyone
As malaga posted, know what it is actually worth first regardless of what is being asked in other words DYOR Relatively easy now with the internet and especially if it is an area that you have lived in for a number of years.
The offer can be made the day it goes on the market, because if it is what you want why wait and possibly lose it to someone else
Offer has to be on a contract, fully filled out and signed with the agent TOLD to present it in person immediately
Offer must have a finish time (depends on where it is and where the owners live and how many owners etc) But usually 48 hours is the maximum.
If the owner does not accept the offer he/she must change the price to what they will accept and sign the contract. Nothing is done over the phone
I usually pay the ten percent deposit because that signifies that I am a very serious buyer and the owner must think twice before he refuses even a silly low offer
Most houses go on the market and even if they are on the market for a few months they rarely get more than two actual written offers, This is physiological warfare and you need to be proactive throughout the negotiations.
The agent will usually be helping you as he wants it sold in as short of time as possible, most sales are lost due too the stupidity and ignorance of the agent.
Minimize your special conditions as much as possible and do not accept any sunset clauses etc from the owner
BUT the offer relies on DYOR re prices and then offer at least 10% below what it should sell for.
If it is not an important house for you such as an investment offer 25% below the price it's worth as a starting point and then negotiate, that's not the asking price that's what your research tells you that the true price is. Be prepared to share the price detail with the agent who will pretend to not know what it is actually worth or even ask him for a comparative price list to prove that it is worth what he is asking, but he will delete all the cheaper properties so DYOR and catch him out (politely)
Good luck with your purchase and remember "The Deal of the Century" usually comes up at least once a month
