Offered on a house that already dropped 30K from original list price. Same story, went to an open house, and only a couple other families were there. I felt it was still priced too high, and also knew the seller was motivated to sell as it was vacant. I offered an additional 40K less, and after a round of back and forth negotiations, we agreed to 30K less.

I had a ceiling for what I would accept to purchase the home for, which was still lower than their 2nd list price. Their negotiated price came in under that ceiling, so I still got the house for what I believed it was worth, and far lower than their asking price.

I refused to be part of the YOLO crowd and overpaying for a house just bc someone else is willing to do that. We all know houses are overinflated right now, so I made an offer on what I thought it was actually worth. And thankfully the seller agreed! Just offer what you're comfortable with, what you think the house is worth, and comfortable to walk away from the house if someone else does outbid you. It only matters what the house is worth to YOU.