How Do You Come Up With Your Initial Offer?

[Lou Ruggieri]

I'm in nj and looking at mostly multi-families but I guess this can apply to everyone. So let's say someone is asking $250k for a duplex. What factors do you use or what is your strategy in beginning negotiations? I know Rich Dad Books suggest offering half the asking price and hoping that works (sometimes it does and sometimes it just comes off as being a real jerk, never mind pissing off your agent). Typically I look for things that need repair and factor them into my offer but agents often respond with, "That will play out during inspection". So I'm just curious how you guys come around to your starting number?