The salary issue... how to approach it?

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The salary issue... how to approach it?

I'm having a problem that I hope I can get some advice with.. I'm planning on relocating soon and I've been interviewing with a company in the state I'll be moving to for a position as an Applications Developer (working with ASP.NET, C# and SQL Server); they haven't made me an offer yet but I've had three phone interviews and flew in for an on-site interview, so chances seem pretty good. They might offer me the job by the end of the week.

They wanted a salary history in my cover letter, and as I'm used to companies that offer much less than what's average where I live now, I said I was negotiable but looking for something around $35,000/year (which is still a good deal more than I am making at my current job). I have two years experience with ASP.NET and web design/development, and with some of the reasearch I did it seems like the average salary for what I would be doing is closer to 45-50K a year, so it looks like I sold myself short for fear of pricing myself out of the job (as I said, I'm used to companies that will offer barely anything no matter your experience, so to me $35k/year is a lot, but then again I've only worked for small businesses and this is a very large company).

Basically I'm asking how do I approach this.. if they make me an offer and ask me what I'd want as a salary, is it "right" to jack up the amount when I essentially said I would take something lower in the cover letter (although I *did* say negotiable)? And if so, how much do I up it by? I'm not greedy.. I could live on the 35k but I also don't want to screw myself either way by taking too low an offer since I *am* going to be moving to another state after all, and if I price myself too low I'll never be seeing much in the way of a raise, but I also don't want to shoot myself by asking for too much and losing the offer. So how do I approach this situation?