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First time home buyer. How to negotiate price?
Often, if your realtor and the selling realtor know each other, your realtor will "discover" what price the seller really wants. (Don't worry about how this is done. There will be no evidence it occurred!) Your realtor will then drop hints that you should aim for that price to ensure the deal goes smoothly. That sounds like what your realtor is doing when he says "If you want to play ball offer them $80k." He won't stop you from bidding lower, but he knows where you'll end up.  Price is just one part of the transaction, however. You can offer $80K, to meet their price, but also request that the seller make recommended repairs or credit you the cost. You can request that the seller cover closing costs or transfer taxes or any other costs. In short, offering the seller X doesn't mean you will pay X. I personally try to avoid credits, because although they make your effective price lower, the actual purchase price still drives things such as your loan, and in many places, your property taxes and other taxes. I would rather reduce the price than get credits. But you do what you have to do if you want the deal. You can also request that certain appliances be included, such as a refrigerator or a washing machine and dryer. You can ask for furniture, or statues in the backyard, or anything else you liked when you saw the house. In short, you offer X for the house, but you also get a bunch of other stuff that you need or want.