Keller Williams Wilshire
The Reavis Group
It is not about asking price, it is about market value and personal value. Some listing agents, especially on short sale and REO's, list the home below market value to create a buzz, attract a lot of interested buyers, and create a bidding war. So if the house is really worth $125,000 and the list price is $100,000, you might even consider an offer over asking price. On the other hand, if the house is worth $50,000 and the list price is $100,000, not even a 10 - 25% discount will bring your offer in line the true value of the home.
Make sure you work with a really good realtor who knows how to price homes in this market. Make sure they provide you with an evaluation of the market (not just recent closed sales, but also current pending and available properties. It never hurts to factor in for the number of properties that are in some stage of foreclosure in the immediate area too.) Add to this how much you like, love, want, need, etc. the home you are looking at, and come up with what you are willing to pay. This is the price you would offer, regardless of the asking price.
Now go out there and get a great deal on a great home, and Dare to Dream.
Real Estate Consultant
RE/MAX Palos Verdes Realty