$500 Earnest Money

What a journey I'm on. No one really tells you specifics about things like buying a home. I just had to drop off $500 of what's called earnest money to the realtor. I made and offer on the house that I want, but I'm second guessing that offer. I have no idea what I'm doing and I don't like this game. When I researched the house, it was sold in 2000 for about $26,000. I know homes are supposed to appreciate, so when I saw that she wanted $56,000 for the house, I was thinking that I could offer about $40,000. But the realtor did some numbers and he wasn't supposed to tell me what to offer, but when we looked at the market in the area, we estimated that the house would appraise at around $48,000, so I offered $48,500. The seller has countered with $53,000. I don't want to to pay that amount because after talking to a few people I should have offered $40,000 and then went up from there and settled around $45 or $48. Now I'm stuck.

God, I don't know what I'm doing. I'm taking a contractor with me from church tomorrow to see the house again and I think I"m going to stick with my offer of $48,500 and if she doesn't want it I want to move on. I found another house, the the taxes are double what I would pay for the house I want.

I don't like this game and I haven't found anything else that I really like.

What do I like?

I want something kind of small, but not big, with a smallish yard in a quiet area. That's what I want. And I don't want to pay more than $50,000 for it.

Father, help me!!