Your RealtorÂ® should be helping you answer what offer price is appropriate in the CURRENT MARKET after performing a Comparative Market Analysis.
While no one individual can predict the future, I personally believe we're not out of the woods as it pertains to market declines in the US. The fact is it's really hard to have a sustainable economic recovery without a jobs recovery!
Having said this, each defined area has its own economic environment; therefore, you should stay aware of what's happening on the National level; however, knowing what's happening in your local area is probably where most of your attention should be placed.
For example, using the 95451 zip code area as a defined area we find that since 1/1/12 to date there have been 18 new listings placed on the MLS with 20 properties being sold in the 95451 zip code area as of this post - most would say this is a "balanced" supply/demand market environment.
Are you shooting yourself in the foot assuming you can discount off the Listing price?
Do you have your own RealtorÂ®?
If not, you are in a Dual Agency and you should know what you are giving up; see:
"Dual Agency: Why should I NOT use the listing Agent to buy a house?"
It's anybody's guess at this point. That stated, as any RE professional knows RE is very local and what's happening in one part of the Country, State, County, City may be the antitheses of what's happening in the other.
It's definitely a Mad Hatters ride at best and sometimes I wonder if the so called experts even have a clue. Frankly, I get crazy in the head watching and listening to all these expert/pundents arguing back and forth about their so called expertise and experience. Personally I'm short on RE and long on Apple. LOL!!
All the economists are predicting growth in the real estate market this year and into 2013 and 2014. Of course, this must take into account if unemployment and the world economy should falter as this would indeed change that outlook.
I suggest that you have your agent discuss the sales of similar homes in the neighborhood with you for comparison so then you can determine what you should bid on the property.
Good luck to you!
Prudential Connecticut Realty
Lance King/Owner-Managing Broker