Understanding the seller: 

All buyers assume that it's the highest price the seller is after. That can be a misconception, it's the net proceeds from the sale that motivate the seller. From the seller's standpoint “net” is the sale price minus the seller's outstanding loans and liens and other financial costs as well as the closing costs. 

A big misconception when dealing with a seller is the offer price. Remember while you want to get the property at a great price the seller wants to also get a great price. If you offer a ridiculously low first offer you may due more harm than good by insulting the seller and ending all negotiations with the seller. Make sure your offer is fair. Also keep in mind that the seller can counter with an offer that is ridiculously high to return the insult. So if you want the house, be honest and fair. The first offer often sets the tone for all future offers with the seller. If you do make an offer that is less that what the seller is asking for, ensure you are prepared to defend your offer with the reasons such as repairs you feel need to be made. If you can defend your reasons often the seller is more willing to listen. 

One other thing to consider when making your offer is the deposit. If a seller is looking at two offers a lot of times the offer with the larger deposit is the one the seller considers. The seller often perceives that the offer with the larger deposit is more serious about the deal, and is in a better financial position, whether this is true or not. 

Keep in mind that when dealing in the real estate market no one wins 100%. Both the buyer and the seller usually end up giving in on a few items. You have to decide how important the purchase price is and during negotiations keep that in mind.