Hi Pam,
To give a simple answer - I'd say go for it. A house is only worth what buyers are willing to pay for it.. There is more involved than just the price. Make sure you make the other terms as attractive to the seller as possible - deposit money amount, inspections, closing date, mortgage, etc. Also, choose a reputable mortgage lender. Sometimes it will make the difference if the seller's agent can be assured that the buyer can meet commitment deadlines. The worst that can happen would be that the seller would either make a counteroffer or say no to the offer. If they reject your offer altogether, there is no reason why you can't come back with a higher one if you are sure this is the home for you.

Pam,
That depends on the home. I specialize in the Blue Bell area and it would depend on how the home was priced. If in line with market conditions/inventory levels and pricing, it would not likely be accepted. However, if the home is "overpriced" based on market inventory levels and condition, then it could be appropriate.
Currently, homes are selling for about 5-10% off list prices in general.

If you are planning to bring in an offer 10% under and then prepared to negotiate upwards, that may be different. It depends on how the seller reacts to this offer. You do have to substantiate a low offer in any event to the listing agent.

Keep in mind though that you are buying a home, not a deal. Be sure if you pursue any home, that it
is one you are serious about.

Elise West Greenberg
Weichert Realtors, Blue Bell
215 628 8300 ext. 129
listwithelise@aol.com

Offer what you are wiling to offer, not what realtors or sellers want, you can afford what you can afford, no one else is going to pay your mortgage. Sure offer 40k below, they will definitely look at it. homes are on market for 12 months in some places, so you have a great shot.

Making an offer and getting it accepted requires you to be able to substantiate your argument. Just make sure that you can support it with data. If the Seller doesn't want to hear it, move on to the next one. In this market, if a home is for sale, a Seller must sell--why would anyone in their right mind test the waters now. Good hunting!

My opinion Yes, it is okay to make the offer. There is no such thing as a bad offer. It helps the seller get a feel for what the markets expectations are. Opens up a dialogue between the Buyer and Seller. It helps educated the Buyer about what the market will bear. Offers are good!!!

Gregory S. Parker, CRS
Coldwell Banker Realty Professionals
2924 Swede Road
East Norriton, PA 19401
Office 610-277-5000 Ext. 249
Direct 610-994-1147
greg.parker@coldwellbanker.com http://www.PhillyAreaHomeHunter.com

Pam,
It is not uncommon in this market to make a low offer. Don't be surprised if they don't accept. If nothing else it gives both you the buyer, and the seller a starting point to negotiate. You need to ask yourself how badly you want the home and if you are comfortable with the payments. Have your agent submit the low offer with all of the proper contingencies.
The very best of luck to you,

Michael

Michael D Delp
Mortgage Pro
4802 Old Bethlehem Pike,
Telford Pa. 18969
Ph- 215-453-1025
Fax- 215-453-1012
Cell- 610-762-0318
michaelddelp@aol.com
michaelddelp@verizon.net http://www.mortgagepro.instantlender.com

It's difficult to generalize when talking about what to offer for a house. It depends on where the home is priced, is it dramatically overpriced? Is it at fair market value? I don't think $40,000 below asking price is too low to start your offer. Have your real estate agent give their opinion on what the house is worth in todays market. You should use sold house from the past 3 months and if necessary go back 6 months. If the house is dramatically overpriced $40,000 may be to low of a reduction in the asking price.