I completely agree with John the Bruce. We are at the point now where we have to look back to the last stable market, 2000, and trace a reasonable price progression from there.
For example, a house is 100k in 2000, a reasonable increase in value per year would be 3%, over the last nine years it's value would have risen to 130k. Once we've determined that number I would then factor in what the local rental market is demanding. Is it possible to rent the home +/- 200 a month of your mortgage payment?
Ultimately don't buy into what these "monday morning quarterback" real estate agents are trying to talk you into. 90 day comps, multiple offers, give me a break. They are one of the main perpetrators of this economic crisis. They drove the prices up on these homes by over inflating the final selling prices through countless tricks. They stood in front of buyers saying you know you gotta buy it now because the prices are going up and your going to be priced out of the market. I've never met one that was honest enough to say, you should stay out of the market, it's unstable and there will be a correction in the next few years. The vast majority are thieves and should answer for their actions of the last decade.
In summation, none of the precipitating factors of economics have positively changed in the last decade. Salaries haven't sky rocketed, the stock market isn't booming out of control and to make matters worse the dollar is weaker then ever. By merely doing a "90 day Comp Set" your never gong to get the real value of a home and until we do and flush these bad assets out of the system, only then will we see a recovery to the market.

Determine what the home sold for/was worth in the 1999 to 2000 timeframe. There you go.

Hello Oysterbaypros,
Taking a "percentage" off the lisitng price is not really a good idea since you have to look at the listings individually. One needs to look at Sold comparables for the last 90 days if there is any and what is on the market currently LIKE the property of interest. Now if you can't find solds in the ideal 90 day window then going back the last 6 months is acceptable. Condition is crutial and appeal of the property. For example if you have three Capes that sold int he last 3 months that are of similar size and condition and features and sold for between 100-110k and a new listing comes up and it's priced at 109,000 it just may sell for full price or gain multiple-offers driving up the price if the demand is there. Another example is a home that has been on the market for over 60 days and multiple price reductions and the comparable properties are 20k less than I would suggest including those homes as your basis for your offer. Include them with your offer as a part of an explanation. Good Luck!

Linda Lang-Bankowski, Broker-REALTOR
CDPE~CRS~GRI~ABR~ASP~CSP~SRES~AHWD~ePro
Quinnipiac Realty, LLC
Cell (203) 619-4377 eFax (203) 306-3155
Linda@QuinnRe.com http://www.QuinnRe.com
31 Quinnipiac Avenue~North Haven~CT~06473
(203) 624-3000 Ext. 701 Fax (203) 624-3001
~Licensed in Connecticut~

Unfortunately, it isn't as simple as just taking a percentage off the listing price. Your agent should prepare a CMA (Competative Marketing Analysis) as though she/he was going to list the property for sale. The process of preparing a CMA can take quite a bit of time as it's not as simple as just pulling up houses that are similar. Your agent will have to make adjustments on the various features (bedrooms, bathrooms, square footage, garage, acreage,...). The process is very similar to what an appraiser does. But, since we are not appraisers, it does not carry the same weight and can not be used as an appraisal. It simply gives you a good idea of what the market value is. Right now, I am finding houses that are way over-priced, under-priced and priced just right. If I can be of any help to you, please let me know.

Robin