Yes, it is a buyer's market and there are deals to be had, but making one crazy low ball offer after another is not the way to capitalize on the bargains available in today's housing market.  So how can you get a good deal?

1. Once you find a house that you like, in an area where you want to live, it is time to do some research.  Find out what homes in the area of similar type and size, on a similar lot have been selling for within the last 3 months.  If you are working with a realtor, and your realtor isn't doing this for you, ask him/her to run the comps for you.  This is the only way to determine fair market value.  Without knowing that range, how can you possibly make an offer?  It would be like throwing darts at a board and hoping that one of them will come close to the bulls eye.
2. After knowing what price would be fair market value for the home, structure an offer that will most likely result in a counter-offer.  After all, if you make an offer that is so insultingly low, you will get a rejection - and rejections get you nowhere.  So what you are after is a counter-offer.  Make an offer that the seller will certainly recognize as being lower than what he hoped to get, but no so low that he won't be tempted to play with it.
3. Remember that there is more to a real estate offer than simply a price.  There are inspections, settlement dates, financing contingencies, etc... that are all points of negotiation and can affect the price point at which the seller will accept your offer.  So, if you have a home sale contingency in your offer, know that most sellers will only take that contingency if they are getting a price point that they want.  If you don't have a home to sell, you might be able to get a better price since the sellers will not be inconvenienced by waiting until your current home sells before you can close on their home.
4. If you get a counter-offer from a seller and the price isn't as low as you would like it to be, don't just walk away from negotiations - make the seller another counter-offer.  You can go back and forth with counter-offers until either you or the seller says "That's it!"
5. Don't get greedy.  If the seller counter-offers and you like the price, take it.  Trying to squeeze another $1,000 out of the deal might just kill it.

Looking for a home that is already priced well, so that you can get a great deal?  Check out our Best Buy picks.

Wishing you sunshine everyday and the home of your dreams,
Jeri