HI Bonbon:

My take is that there is no bad offer, so bring it on - as long as you are not afraid of losing the house should you insult the sellers - although a good listing agent will always advise the sellers to counter any offer.

Then the negotiation will just be like the staring game, and see who can play it right to make the other side blink first. The ones who wanted it bad enough and is clever enough will be the winner.of the game .

Sylvia

Bonbon,
I wrote an article a couple of days ago that may help you. It really depends on the property, the location, how it's priced. An overpriced listing deserves to have a low ball offer where a well priced listing does not. It helps to work with a Realtor that knows the area and market trends.
Although the blog post was written for Miami, it applies to all markets.

Good luck,
ines

Thanks for the answers. They are helpful as they give multiple perspectives on the issue. I asked the question because my agent told me that in our local market the situation is so stagnant that he said he hasn't sold a house in about two months. There's simply almost no-one buying, and there are so many houses sitting around. About half of the houses on the market have been around for more than 3 months, with many in the 5-8 months range. I've seen the prices being slashed on many properties, often by 10-20% already, with some of them stating "bring any offer". Even after this adjustment, most of the prices are 10-15% over the appraised value. My opinion is that in this market (specifically in our local market) the sellers will be lucky to get the appraised value of the house. But, I'm a buyer, so I'm obviously advocating my case, though I believe that my opinion and/or analysis is based on some solid research.

Hi Bonbon,

This answer probably wont be popular with agents and sellers, but here it goes. I am also an active home buyer and based on everything I am reading and hearing about the current market via lenders, realtors, and watching propertys sit around, my plan is to offer 20-30% under asking since I am putting 20% down. I am also going to ask for sellers to cover closing costs since many homes are still overpriced even with 20% reductions in price. The worst thing the seller can say is no or make a counter offer. If you are willing to risk losing the house as a worst case scenario. Make sure you have a "buyers advocate" as an agent who is willing to go to bat for you, and not be afraid to write an aggressive offer. Make them show PROOF they have gotten other buyers good deals. Many brokers are concerned about how this will make them look to other agents, do not have good negotiating skills, and may give you some excuse like the houses in the neighborhood are still getting multiple offers, or whatever, and they dont have your interests at heart.

First of all, find a Realtor specifically that works in the neighborhood that you are interested in. When you find a home that you like, your Realtor will pull comparable properties and guide you in making the offer that is fair to both sides.

20% is a big difference. In my area, most homes sell between 97-100% of the list price. The reason? It costs us a lot of money to properly market a home. If we over price it, it takes longer to sell (and may not even sell!) and it ultimately ends up costing us more money.

The good news is....interest rates are low and so are home prices. It's a great time to buy! Good luck!

First of all, find a few properties that you like. Then ask your realtor to check on the history of the listing--the longer it has been on the market, the better your chance of having a low offer considered. I tell my buyers to decide how much they would like to offer, and let the negotiations begin. For the seller, I tell them to always offer a counter offer if they feel it is too low, and not to take the offer personally--it is only the beginning of the negotiation process. Don't worry about percentages. Also, a good realtor will be able to tell you what property has been selling for in that neighborhood--the only reliable number as to the value of other properties in the neighborhood. Good luck in your search!