i'm terrible at negotiations (coz i'm not an extroverted sales-arsehole) but even i know to reflect that question back by asking what's being offered.
The right thing to do is go in with "best world" and "worst world" numbers, and when asked what you want, give your "best world" number.
That number shouldn't be a pie-in-the-sky, set you for life number, but instead a real idea of what it would take for you to live at your standards in that part of the country. This means you have to think about what commute you are willing to put up with and what that means for housing prices, and what the overall cost just to keep alive (electricity, transportation, food, etc.) will be. Add enough that you can save about 15-25% per year, and then add on enough to be able to relax when you want to. That means you have to define what "relax" means (go skiing, play video games, travel the world, etc.). That'll be close to your "best world".
You're "worst world" depends on your current situation. If you already have a job that is OK, maybe you only drop about 10% from the best to get your worst. If you've been unemployed for a while and bill collectors are camping on your door, maybe you'll take less.
With those numbers firmly set in place, you don't have to let them make the first move, as you know your upper and lower limit. It's just up to you to decide what happens if they counter and are still above your worst. Then, it's a matter of how much the quality of the job fits with what you want.