The next step in buying your first home consists of sitting down with your REALTOR and making an offer on the house you want to own.
One thing I tell any of my buyer clients is to bid where you want to bid. I cannot tell them what to pay, but I will tell them if they bid too low, they can expect at least counteroffer, if not a full-on rejection. I think that you should make a fair offer on any house you bid on, but, again, I can't tell the buyers what they should do.
I believe in the old addage, "Treat others as you would want to be treated". If YOU were selling your home, would you want people to come at your with one lowball offer after another? I am pretty sure I would be insulted after a while!
So, the moral of this blog is this: Bid a number that you are comfortable paying, but think of how you might feel if you were in their shoes. Chances are, you'll make a fair bid on the house that you want to buy after you think like that. Remember, the seller can ALWAYS counter and there's ALWAYS other houses if you just aren't comfortable with the negotiations. In the end, it WILL work out for you!