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If the market data you've collected indicates that homes in your area sell quickly and above the original asking price, then you're in a seller's market. You may have to set your sights on a less expensive home, knowing that you'll end up spending more. Conversely, if homes are on the market longer and sell below asking price, you have the upper hand. If the typical sale price is 10 percent below the asking price, you might start your initial offer at 15 percent below that list price, just to leave negotiating room.