Your agent will advise you the recent sales for comparable properties and the list-to-sell ratio for homes in the area.
Your agent will also be able to present your offer in a business-like and professional matter.
Working with a real estate agent and listening to the advice given will help you determine an acceptable offer which will not insult the seller.
Keep in mind if you are in a seller's market don't go down this road if you want to get an accepted offer.
After working with a couple of other Agents (even someone in my office), he finally bought in early 2013, a really awful location and a real dump.
Think twice b4 you low ball any offer in this market, you may be very disappointed, frustrated, and you'll probably blame you Agent.
That's like asking home much mud must be in the tea before it is undrinkable?
A low ball offer IS an insulting offer.
You can't have it both ways.
Own it! YOU ARE A LOW BALLER!!
So, how do you get you dirtball offer accepted is your REAL question.
#1. You must know what community values are.
#2. You must know the ceiling
#3. You must know repair costs
#4. You may find it helpful to know the ARV.
#5. What is the sellers situation?
#6. How does list price compare with market values? Does price reflect condition?
#7. Are their other 'like kind' homes to choose from?
#8. How clean of an offer can you make. Pile on the VA contingencies...and you'll quickly realize you've been focused on price and NOT the real issues.
#9. What is the method of selling selected by the seller? (FSBO, Flat Fee, Rebator, Discounter, Realtor)
10. How do you structure a dirtball offer to be beneficial to the seller? Now that's where the skills of a pro will prove essential.
If your offer receives NO RESPONSE, and that WOULD be the results if I were the listing agent, you need a do-over with another offer containing more substance.
By the way, it's not 2009 anymore. Your strategy may be flawed.
Now OBVIOUSLY that doesn't mean that every home is selling for what it's listed for. What it DOES mean is that for every home that sells for 5% BELOW the list price there is one that is selling for 5% ABOVE list price.
So find out what the ratio is in your area. If it's 95% then if you were to get a home at 10% off list price you would be getting DOUBLE the discount that the typical buyer was getting. If homes are selling for 99% of list price and you get a home at 95% of list price then you are getting FIVE TIMES the discount that others are able to score.
If you want bigger discounts than what others are getting...I would worry that you are doing so just because you want to be a "super negotiator". I've run across these types in multiple scales professions. They are the type of person who has no reason for WHY they should get a hair-scorching discount other than the simple fact that they want one.
Most of the homes in the area sell for between 2-5% of the asking price.
A low offer on a home is usually done if the home needs updating and has deferred maintenance.
A home priced right in top condition may sell at or close to asking price.
Low offers were acceptable when the market was depressed a few years ago but the market in this area has recovered.
Give me a call or email me if you need assistance with your search.