Thoughts on purchase PPOR


We saw a place on the weekend that we are thinking we would like to purchase as a new PPOR. We have organised for a second viewing midweek and are getting a valuation done (with CBA so can pay for this ourselves and then use this when deciding what to offer). The REA says other people are interested and has sent out the contract to a few people already (Saturday was the first viewing).

The REA said that two valuations have been done already and gave me a rough value that they returned. I suspect at least one of these valuations was done by the vendor.

Assuming our valuation comes in around the same mark as the other valuations I am trying to work out what offer we should make ...

I would be happy to pay the "current" valuation figure however it is fairly close to our limit so wouldn't have much room to negotiate. Should we offer a little bit less than this so we have some negotiating room or is this pointless as they are more than likely to reject an offer underneath a valuation that they have done themselves?

Any thoughts?