In working with buyers, there is often times a hesitation when it comes to price.  We hear things like, "I like it, but I'm not sure about the price."  My response is always the same, "Well, what would you like to offer?"  This is the part that can become uncomfortable for some, because negotiation for many is "uncharted territory" and there is a natural "fear" that can creep up on the person.  Here's some tips to keep in mind:

1. Offers are a good thing and "open the door" door to discussion.  Discussion is what negotiation is all about. 
2. Remember, it is the seller that makes the ultimate decision to accept, counteroffer, or reject . . . not the agent.  The listing agent has a responsibility to present all offers to the seller, and it is the sller's who makes the decision.
3. Evaluate Counteroffers objectively.   Don't let emotions get in the way when it comes to counteroffers.  Sellers may refuse the price you offered and offer a slight bit hgher price and add something else that might be of value to you.  For example, the house has a big yard and you noticed there is a riding lawn mower in the shed.  You mentioned during your walkthrough how that mower would probably be necessary for that size yard and you know you will have to buy one if you buy the house.  The seller may counteroffer with adding the mower as an inclusion in the sale.  Obviously you can't just look at what is the "dollar value" of the mower and see how that factors into the price.  The best approach would be to look at each piece individually . . . price is within (or below) your expectations, house is in very good condition, great neighborhood, and you get a mower too!  Sounds like a good deal to me.
4. "No" doesn't mean it's over.  A seller may come back with just "no" and no counteroffer.  If you're really interested in the property you still have options.  One, you can make another offer with another price.  My suggestion here is to ask why the initial rejection.  This way you can make a more educated evaluation of what to offer.  Second, move on with your search but . . . don't forget about the other property.  If you don't find anything in your search and some time has gone by take a look to see if the other property is still available.  If so, make an offer again.  Time can change attitudes some times when it comes to negotiation.  
5. Get it IN WRITING!!!!!  The general rules of thumb . . . if it's not in wiriting . . . it doesn't exist.  There can be some "bad habits" in this area from both sides.  In dividuals may make a "verbal offer" just to "feel out" the other side but not put it in writing because no one wants to "waste their time".  This is not a good idea for several reasons.  First, someone else could come in and present a contract offer in the time "papers" are being prepared and you could lose out.  Second, the seller may change their mind by the time the contract is presented to them and not accept at that point.