Most people get a little nervous when it comes to making an offer to sellers. We want the best deal possible without feeling as if we are offending anyone. You have to realize two things.

1. Real estate transactions are business. You aren't making friends, just being a honest businessperson.

2. Everything in real estate is negotiable.

Don't be afraid of making a low offer to a seller. You don't know what they are thinking or what their situation is. The seller never even has to see you. In most cases, the agent handles all communications.

The seller can do several things after receiving your offer.

He could accept your offer, which would be great. You have a contract to buy a home at the price that you wanted to spend on it.

He could totally reject your offer. Oh well, you can either make a new offer or look for another home. Either way, it's fine. At least you tried.

Your offer could be counter-offered. He will reject your offer, but give you an offer on the table. If you receive a counter-offer, you can then accept, reject or counter-offer.

For example, on the recent sell of our home, we were offered $40,000 less than our asking price. We countered with $10,000 less and the buyer eventually accepted our counter. We knew we had overpriced the home, as we weren't really found a new home yet. But we kept the communication open and all went well.

The key in buying is that you have to set your top-of-the-line price before you make offers. Decide how much you want to pay for the property and stick with it.

Here's a key though. By reducing the price, the seller is telling you that things are negotiable. You may want to counter again.

Here is something to remember. There are tons of houses out there. Yes, you may have to shop around, but it can be worth it in the long run. You want to buy a home at the price you can afford. Not more than you can afford. Not just for a home.

There are many aspects to the purchase of a home that can be negotiated. You may be able to lure a seller your way by offering a fast settlement. If you are prepared to settle quickly, that may be worth money to the seller. It works the other way as well. The seller may need to stay in the house after closing. Are you able to wait? You may be able to get a better price in one of these situations.

Make sure that you know how much you want to spend, you know what you are looking for and that you stick to it. Sooner or later, everything will come together. When it comes to a low bid, what's the worst that could happen? You are already looking for a home, so keep looking.

Martin Lukac, represents http://www.RateEmpire.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!