The average home value in that neighborhood is $325,000.
What we do not know is if that community value has been used with this home attributes to establish a 'potential' market value for the subject house. Let us assume this has been done and the neighborhood value and this homes market value is #325,000. Somewhere the number $200,000 appeared. Just like magic. That's a gigantic 40% discount. Wow! So you want to buy this home at 60 cents on the dollar. Now THAT is a GREAT deal.
I think over the past two years, this home owner has kicked a lot of 60% investor offers to the curb. If the above assumptions are correct, the listed price is fair. There is, however, so very, very much we do not know. This two-by-four-across-the-head approach has little chance of success. However, there are better strategies that can produce the same outcome. Consider those. if you don't know the other strategies, then fire in your low-ball offer. Maybe it will start a conversation.
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.
Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called â€œchasing the curveâ€) and Buyers will be asking the question; â€œWhatâ€™s wrong with that house?â€ and â€œWhy has it been on the Market so long?â€
Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; â€œArenâ€™t you obligated to sell at this price if someone offers it?â€ The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)
Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.
Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
In addition to whatever your Realtor says, you should offer what you feel comfortable with. You may not know the market like an expert professional should, but surely you have been looking at other homes in the area. Trust your instinct and your Realtor's knowledge!
If you're talking about the property on Man O War, it looks improbable at $200k. You can try $200k and hopefully the listing agent will cushion the blow to the Sellers (looks like 3 owners) so you can ultimately reach an agreement. I'm guessing the current owners are not that negotiable at $260k and that's why it hasn't sold yet.
It's surprising it's not already sold since it was reduced to $260k in December.
Good luck and if you want to search "like a Realtor" with the most details, you're welcome to sign up for a free ListingBook account on my website: http://www.SoldOnTampa.com
All the best,
Alma Rose Kee, PA
Future Home Realty
How much it's worth to you if you're investor would be based on your income and returns overtime.
Offer a little less than what your willing to pay to leave room for some negotiation. I wrote a blog on this topic awhile back (linked below) if you are interested.
While you don't want to insult a seller with a low offer, you never know how much they are willing to accept at any given point in time. Circumstances & situations change all the time and an offer that may have been unacceptable before - not so much now.