This is Don Tapper’s fair offer price model. (Dan is a fellow Realtor who posts on Trulia often).
1. Have your Buyer agent check the RECENT comparables.
2. Select the lowest number from the following three: (1) comps, from a CMA, (2) what you're preapproved for, and (3) what you're comfortable spending.
3. Then look at the listing price. If it's higher, stick with the lowest of those three numbers. If it's lower, drop your maximum down to the list price.

That process gives you the maximum you can spend on the property. Offer less.

Whether that number is 20% below comps (what would generally be considered market value) depends on the other numbers (prequalification, comfort level, and list price), as well as how aggressive you want to be.

Be sure to check comps - even if only to avoid OVER paying. Best of luck!

Hello Joe-

In your market area (oshkosh) list to sell ratios have been maintaining the 95-97% of list. This means that the majority of homes in oshkosh are getting around 96% of thier asking price. Now, as in all markets there are always homes that are getting much below thier asking price however we are still seeing homes that are selling for more than thier asking price. Not what the national news would lead you to believe. The key is "national". Our "local" market has been withstanding the real estate adjustment quite well. Another option that you have here in Wisconsin is to get a buyers agent. This is an agent that will look out for your best intrest in a real estate transaction and they should provide you with a market analysis on the home your intrested in and also let you know what other homes have sold or are for sale that are similiar to the one you are looking to purchase.
What I tell all of my clients when deciding what price to offer is that it depends on thier motivation.
If the most important thing is to get the best deal out there then what you offer is going to be way different than if it is the home of your dreams. Sometimes it comes down to if you want to possibly lose the home to someone else or not. If you have further questions please feel free to check out my website at http://www.duanemurphy.com or just give me a call. Good luck! Oshkosh is a great place to live, work and play!

In short, no, there isn't a formula that Realtors use in order to calculate how much to offer for a home. How much you offer is really dependent on how you feel, how much you want the home.

Depending on the condition of the home, why it's being sold, how much you're in love with the home, your offer will vary. If you can tell that the house will require extensive termite repair or there is extensive cosmetic repairs that need to be done, you can take all that into consideration and lower your offer from that point. If you are working with a Realtor they will be able to best guide you as to how much you should offer to have some sort of shot at getting either an acceptance or at least a counteroffer. Their opinion is based more off experience than off a formula of sorts.

Either way it doesn't hurt to try! Good luck!