In a seller’s market like we find ourselves in now, there are proven methods to purchase a home at a reasonable price.  But in this situation a well thought out negotiation strategy is a must. Importantly,  when competing in a bidding war, you must guard against an emotion-fueled offer.  In other words, know your limits before you begin to bid. Prep for battle with a sharp Realtor® and know the market. This article in Realtor.com provides the basics.

It is important to have solid financing; eliminate contingencies – carefully; choose a settlement date convenient to the sellers; offer to pay closing costs; personalize the transaction; try an escalation clause; and most importantly, control yourself.