The easiest way to answer this question when my buyers ask is as follows.

There are normally 3 prices of a house when it is offered for sale

1) the price that the seller values the home
2) the price the buyer values the home and
3) somewhere in between where the seller and buyer agree to settle.

If you believe that the value is truly 20-30K less than the asking price, then there is no reason not to offer the amount in your head. You should have your Realtor do some research for you and assist you with your bid. If you don't have a Realtor, get one! It costs you nothing and will make your decisions more financially sound in the long run. There are several qualified Realtors listed on this page who would love the opportunity to apply for the position of your buyer's agent. When you find the right Realtor, work together to implement your home buying plan with the ultimate goal of settling on your new home. Best of luck......................................chris

In this market (Spring 2009) I am finding that bids are coming in $50,000. below asking on homes in the high $500,000. range. These are serious buyers who have to move...they are just beating up the sellers right now. I asked other agents,and in Northern NJ this is the norm. Also, language in the Attorney Review letters is indicating that buyers expect every system in the home to be near new, or they want replacement value at closing. It is a tough thing to be a seller right now, and in my opinion a really good time to buy.

Between lack of buyers, low interest rates and reduced asking prices, it is a great time to trade up and wait out the recovery.

Whether or not the bid is 'inappropriate' depends on what the recent sales activity in the neighborhood shows. Of couse, while the offer can be made, if it is too low the seller may not consider you a serious buyer, rather someone just 'looking for a deal'. However, that said, it depends also on the condition of the property, how long it's been on the market, and the seller's particular situation. If there is room between what the seller has in equity and your offer, it may be at least a starting point for negotiations. If I were your agent, representing you, I would include a cover letter to the seller explaining why the offer is structured the way it is. At least with that the seller will likely attempt to understand your position and take you more seriously. In closing, I would suggest that you can expect a counter offer.

Dear House Hunter,

In my opinion, there would be many factors that would come into play. 1st and foremost......what's the market like? Where I live, the market is still pretty high. 2nd, I would talk to your real estate agent. He/she would definitely know whether you could get away with it or not. The problem that I have found, even though it's a down economy, is that the sellers will still get offended and completely reject the offer. Make sure that if you don't want to step on toes too much, have your Realtor do some digging for you to see if the sellers are in some kind of financial distress and really need to sell. It's not that hard for your Realtor to check at the court house to see if there is any liens or judgements or notice of defaults on the property. Personally, my advice to you is offer what you think won't offend them and more than likely they will counter back. Good luck!

You can offer whatever you want but the question is if the home is priced right like Aj says. Have you looked to see what similar homes have sold for? If you want, you should contact a good realtor down in DE who can run the comps for you.

If you need help with DE, my partner here in philadelphia is licensed in PA, NJ, and DE. You can email her at dawn.ciganik@lnf.com and her name is Dawn. She would be able to help you.


Sean Dawes
Long and Foster Real Estate Inc.

Hi House Hunter
It depends , if the house is priced right along with the recent sales in the area,then making an offer 5% to 10% lower than the asking price nowadays is understable, just make your offer and see ,most likely the seller will counter offer any way.
Good Luck