Certainly time on the market is a consideration. If the property has been listed at this price for six months - especially through our healthy spring market - then it is overpriced. If it were not, they would be done.
However, if the current price is the result of a recent price reduction, then the price may not be so well tested. This level of detail is available in the archives of the MLS, which is accessible to agents.
A price based on the facts of the market is the best starting point for a successful negotiation.
Good luck to you!!
Unwavering Commitment to Service, Unsurpassed Results
Looking at your example, if it's been on the market for 6 months and is priced at $425 (unless there's been a very recent price drop), it's overpriced. Problem is: We don't know how overpriced it is. As for $360,000--if you want to make an offer at that amount, make the offer. One thing to consider, though: Although it's unlikely, $360,000 may be too high.
Example: I was making an offer on an investment property. Realistically, based on the comps (poor condition, 2 bed/1 bath, inexpensive area) it was worth about $12,000. I made an offer below that amount. The seller responded that she wanted $55,000 for the property. Now, let's back up. If I'd first asked the seller what she'd wanted and she said $55,000, I might have though it'd be a great bargain at $20,000. But if I'd offered $20,000 and it had been accepted, I'd have been greatly overpaying for the property.
Point is: The asking price has NOTHING to do with the value of the property. You or your agent have to do research, determine what the property is worth, and then make an offer.
Your Realtor should be advising you on what the home is worth and where to begin negotiations. They have access to all of the market information in your area. On the other hand it is important that you offer what you feel the home is worth and what you feel comfortable with. At the end of the day you are the only one that has to live with your mortgage. As a Realtor I am always here to advise my clients and coach them, but they make the game-time decisions!
David Realty Group
For example, if buyers in the last 3 months have paid $450,000 for similar homes it may call for a different strategy than if comparable homes have recently been purchased for $370,000.
Also, keep in mind that a significant amount negotiated off of the asking price does not always equate to a better deal. I've had clients that we've negotiated $40,000 off of asking price and clients that have paid asking price yet both purchases equate to almost equally good deals on a home.
it doesn't really matter what anyone here thinks......and really, no one here can have an opinion on a house they know nothing about!
It sounds as though you are not working with an agent - otherwise, they could give you a sense of market conditions and recent closed sales. Armed with that information - YOU, yourself, could make an informed decision on this home's value.
When all is said and done...... you are the best judge as to what the house is worth (to you)......along with the appraiser when the time comes!
Best wishes......have a continued happy holiday season!