Thanks for all the comments... We recently expanded our search to nearby cities. And I have now shown her about 7 properties that fit all of her requirements as well as being well within her price range....
We found out one property she really like is going up for auction next month..Now she like well I wont make an offer on that home lets look at more and hopefully its still available next month for auction....

Tomorrow I am planning to show her a couple more...I am thinking about asking her after I show her the properties ... out of all the ones you have seen which one can you see yourself living in and being happy in (if she says one I am going to ask her what she wants to pay for the home) and once she gives a price say let's write an offer for that amount (just to get the process started - of course if it's a low ball offer I will call the LA to make sure they aren't completely offended)

estatereal - you are correct I have been in business for about 4 months... I currently have 3 closing schedule (wrote another offer today) and received a couple offers on my listing today....

If it's a lowball just present it. What difference does it make if the listing agent is completely offended? It is our obligation to present any offer our clients want to make. If they are offended, they'll get over it.

I say that because I know with some lowball offers they are automatically rejected and no counter offer is given....At least that way I can express we are serious and how about starting negotiations from that number and hopefully we can come to an agreement...
But mainly because most agents in my area are not pleasant people to deal with

Lower offers will be taken more seriously if your buyer has cash and proof of funds. If your buyer is like all other buyers with marginal credit,low down payment, and is going FHA good luck with the low balling.

I deal with the same stuff in commercial from buyers. Is this a down market ? YES! Is it a crazy market ? NO!

Both buyers and sellers have to lower expectations. This is why many deals are not happening. Sellers realize it is a down market but do not want to "give it away" while buyers realize it is a down market but "want to steal it"

This is what we refer to as the "bid-ask price gap". Until that number lessens to a point where the seller and the buyer say OK let's do a deal then nothing will happen.

In commercial we have LOI's or "letter of intent" which does save time in my opinion. The other day I had a guy offer verbal 500k cash for a listing at 739k which we turned down as we already turned down a 550k cash offer for the building.

So it comes back to the bid-ask gap. Seller is willing to sell in the 600's but not the 500's. I have to find the buyer willing to go into the 600's and it is a smoking commercial deal. I am looking forward to the market finally moving and buyers and sellers meeting in the middle more.

Since so many new buyers seem to think they can "steal" a property, and at least locally, they can NOT. I simply ask them this question, "Since this seems to be the best home for you that we have found, and it is in your price range, is it going to bother you if you lose this property to someone else that may be making a more reasonable offer, based on current market values?" Mr. buyer, I have had several buyers lose a couple of properties by lowballing their offers before they finally realized that I am telling them the truth... that scenario really happens regularly.

They still get to make the decision, but it's your job to tell them the possible consequences of irrational decisions. One recent educated buyer asked me why shouldn't he offer 10k less than asking price and see what happens. This was a VERY popular neighborhood, and all nice homes priced well sell quickly. I simply asked him that if he were the seller, and his neighbors all around had been selling for 200k, would you settle for 190k if you had the data to prove you are very likely to get 200k? His response was that the logic does make sense, and not willing to risk losing the home he really wanted for a "crap shoot".

Super that's great to hear.....My buyer does have proof of funds....she plans on putting down 100k and financing the rest

By the way your previous response provided some great tips

You have to define what their expecations are from the start and then educate them about the realistic opportunities in their market. Remember...you are the real estate expert...not them. This is a helpful powerpoint and customizable home buyer presentation if you are working with first time home buyers:

First-Time Home Buyer Survey Results For Agents and Consumers

Gary Keller’s ‘Your First Home’ Book – Free Download of Customizable First-Time Buyer Presentation