This is a very open ended question. You need a professional Realtor who has your best interest in mind not an agent who is only looking for a commission at the end of the sale. If similar homes are truly selling at $760,000 that could be the actual value. There is a lot of factual information out there you need someone who can crunch the numbers for you and who also has a good feel for the local market to guide you.
Douglas Leone http://www.ClaireDLeone.com
(914) 263-0826

To comment on what Caty said, I haven't really seen prices come down in westchester. A few things that were obviously dumb purchases (looking at you 9 Doris Dr), but not much, but they have definitely stagnated. The last bubble-rific market in the mid 80s ended in westchester in 1987, from 1988 to 1997 the median home price in westchester county was flat. A house purchased in 1988 according to the median, would sell for less in 1997 factoring in depreciation etc. If you upgraded so the house was in the same condition in 1997 as it was in 1988 (ie 5 yr old kitchen, newly finished floors etc) it would sell for the same price. Considering the huge closing costs in westchester, the obscene taxes, and the cost of maintenance on a house (routinely estimated ~10% of price) buying in 1988 was financial suicide. If we were to experience the same thing, we'd be in about early 1990. No one can say for sure if this will repeat. Job losses are growing in the financial sector which supports a lot of the high paying westchester jobs and credit is still hard to come by, although the nationalization of the GSEs has helped that a bit if you're getting an FHA loan. Anyway, the advice from the realtors about how to structure your offer is good. Look at recent comparables, and structure your offer based on that.

HellHello Sarah,

I agree with Gail. To best negotiate any deal the best way to do so is to have all the facts about the home in question, neighborhood, private sales, all recent sales as well. Knowledge is power! Get the comps on the home see what are the similarities and differences of those home and the subject property you feel fits your needs.

Questions to ask:
Have there been any changes to the property from when it was listed at $800K to now listed at $850K?
Does the home have any historical value?
What is the seller motivation?
How long has this home been on the market?

Questions to ask yourself:
If someone else purchased this home will you be okay with that?
Is this a home that fits your needs wants and desires?
Does this home feel right when you enter?
The similar homes that have sold are those homes that you would have purchased based on the interior pictures?
Have you driven by these homes that have sold and see if they would have worked for your current wants needs and desires?


Once all this information has been gathered and processed you should be able to make an informed decision.

P.S. If the home has been on the market for some time now. The seller of this home shouldnt be insulted by your offer of $760K (If thats what your research tells you) The seller should be insulted by all other buyers that viewed the property and didnt make an offer.

Got Propery Get Egen GetEgen.com

Prices in the Westchester area have only just started to come down, I'd say, around Feb/Mar 2008. It still has a year or 2 at least to go until it hits bottom. In Larchmont in Feb I put in a bid 35% lower than the asking, they said no, but then 2.5 months later they said yes & by that time I didn't want to buy it b/c my job was unstable. Right now, some houses are priced closer to fair some are not - I think it depends on the approach of the seller: do they want to pitch high to get a low ball bid close to what they really want or do they want get more views & hope someone falls in love and buys? Therefore, I would do much research on Property Shark & town records & figure out what sold for what price in x year & figure out the averages. Yes, exactly, your scenario sounds suspect. If there are lots of "similar" homes why that one & why now? Can you rent for a year? There are lots of homes for sale being offered for rent b/c they're not selling. Good luck.

that 760k - where are you getting that info from?

Have your Realtor run comps on recent sales (no more than 3 months back) in the same zip code, same school district within 1/2 mile (preferably the same neighborhood only) and you will know what the fair market value is for the house.

Also keep in mind how your feel about this property. This is not only a commodity you are purchasing, it is going to be your home...that has value.

Bid to buy it at its value. It sounds like you know the value. Asking price does not necessarily have that much to do with value. If you know what similar homes are selling for, you know its value. How much is it worth to you? How will you feel if you lose it? How will you feel if you think you overpaid for it? If the house is very overpriced you may have to wait for the sellers to become more realistic . f you are not sure of the value, you should have a "Buyers Agent" in your corner to help you through the process.
If you need some help, feel free to contact me.