Buyers are never sure how much to offer on a home. I like to figure out what the value of the home is and suggest that they base their offer on that.
Most sellers know that they won’t get their asking price. I made this little chart of list prices vs. asking price from data in out MLS for the St. Paul homes for the last few years. The MLS has data for most of the homes bought and sold in these parts and the data is deemed reliable but not guaranteed.
Buyers are very cautious these days and so are lenders and appraisers. No one wants to pay too much for a home.