Hi, Kathy!
Post the area the property is located and we may be able to give you a better idea of what to offer.

Michael's correct. It depends on seller motivation. It also depends on the comps.

First, start with the comps. How much is the property actually worth? It's probably not worth $224,900, or it would have sold. Still, you need a better figure. The comps might suggest $219,000. Or $199,000. Or somewhere in between. Or somewhere lower than $199,000. You need that number first. Then, of course, pay no more than comps. Your offer almost always should be less.

How much less? Depends on seller motivation. As Michael says, it doesn't sound as if the seller is particularly motivated. At least not yet. (Situations do change.) Have your agent try to determine the reason for selling. Job loss? Job relocation? Medical bills? Those are high-level motivators. On the other hand, sometimes people just want to see if they can get a certain amount for their home. Or they'd like to sell, but would be perfectly content to stay where they are. That's low motivation.

Then (and this step is sometimes misunderstood and sometimes controversial) find out what the sellers paid and what they still owe. Understand: That has absolutely nothing to do with value. They might have paid $50,000, or they might have paid $200,000. What that does tell you is how low an offer you could make that the sellers would be able to accept. If they paid $200,000, then realistically they can't accept much below $224,900 without either a short sale or bringing money to the table. So they'd probably resist an offer below $224,900. On the other hand, if they paid $50,000 (and haven't refinanced), then they could accept a much lower offer.

So: Get the comps. Determine motivation. Determine purchase price. Then make an offer.

Hope that helps.

Hi Kathy,

All situations are diferent. The main thing is to do your homework to determine what the recent market value is for the property. A local Realtor should be able to get you the proper MLS inormation that you need for this.
It would also to be valuable to know how motivated the seller is. If they have been on for 5 months and only dropped $10k they don't appear to be very motivated.