You must have a clear idea of how much a property is worth before you go to make an offer/bid. This means you should do your due diligence, finding the market value of the property. Here you can look at other properties of similar size and style that have sold in that area within the past year or two. Also, look to see what trends are occurring in the market at that moment. Is there a surge of sellers or people looking to purchase property? After you've looked at all these factors, then look at the details of the property in question. You need to find out if there are any pre-existing liens on the property, any remaining loans that have yet to be paid, repair costs, legal fees, or anything else that may cause you to put in additional money after the purchase of the property. When you have carefully reviewed everything mentioned above, then you will be in good shape to make an educated offer / bid on the property.