Sellers and their brokers probably will use "comparable sales" to arrive at a selling price for the property. In that case, the seller prices the property according to the selling prices of "comparable"  properties in the recent past. Therefore, buyers know the property is  priced to compete with others in its price range. The eventual price you pay may be negotiated between you and the seller, but it probably will fall in the range of the "comparable sales." If you are being represented by a Realtor, he or she will advise you about the price and other aspects of home buying.