I've been with my current company 3 years and in that time I've gotten a single 3% raise. It wasn't too bad because my job was easy and I never had to go into the office. Now we're being tracked and my manager has become a raging asshole since the end of last year. I just felt like I wouldn't mind working harder if I could get paid more. So I started applying hoping to practice and not expecting any offers because I hadn't done any interviews since I was still a student.
I got an interview and it went relatively well. The hiring manager called and I thought it was to offer me the job. He asked what salary I was looking for and I didn't expect the question so I said I was open. He then asked what I made now. I make just over $72k but I said $75k and immediately regretted it because I'm trying to increase my base by switching companies of course. I just wasn't prepared for that question.
He called later to make a verbal offer for $80k which was disappointing. For reference I have friends with the same degree and experience and field as me and the lowest paid one makes $85k so I was really hoping to get to $85k. I've never negotiated but my friends said to always counter. I just feel I'm not in a great position to negotiate since I already told him what I make now. Then again switching companies for a $5k increase feels kinda low (from his perspective that I'm at $75k now).
I got some advice to say I have another offer but I prefer to work with them and can they make a higher offer but I was given contradictory advice that it'd be a bad idea and just to ask for more (say I was hoping to get in the range of $85-90k and can they get to that). What's the best way to negotiate this? I don't want to ruin my chance but I don't want to accept less than I think I'm worth because I feel I'm undervalued currently. Thank you for the help.