Negotiating tips for home buying?

[Isaac El]

I saw a house that was listed on MLS, I called the agent a few times (no response) So one time I saw the home buyer outside (this is a house I pass often on my drive) and I pulled over, introduced myself as an investor, and a cash buyer, can close right away, no mortatge. She said she would be interested buy first wants to wait till the contract with the agent was over - she was also very unhappy with the agent and her lack of showing the house so she told me to call her and speak to her early July (that when her contract ended)

She had the house in the market for $499k for 12 months

Spoke to her and she said to come and she will show me the house and for me to make an offer.  I met with her, saw the house, and made her an offer of $375k - and she said there was no way she could do that.  (my offer of $375k is slightly above what other investors are buying houses for in the area, and I know I made her a very fair offer - but she has the $499 price stuck in her head and thinks thats how much her house is worth)

I think maybe I could have done a better job at negotiating.

I am a newbie - so really would like to hear how those of you that are way more expeirenced negotiate the price down to where it should be? I am sure this is a very common occurance, homeowner thinks their house is worth X "top dollar" but realistically the house is worth less...