re: How much should I offer on a home I like? UPDATE

So a higher offer came in... the seller should either 1.) call your Realtor and say you have to beat X or 2.) call your Realtor saying the owners accepted the other offer (odds are that it was right around the price they wanted). I wouldn't give up on the house but you have to manage expectations. We know nothing about the other offer - have they had an inspection? Do they know about the problems the house? Etc. The buyers may back out or try to renegotiate after having an inspection.

Losing out on a house happens. There are always more homes out there. Be patient and you'll get one you like just as much if not more.