Well that is the questions that all is wondering right now! Do I low bid for another market down turn or even bid over asking price since it is currently under market value? Well with the market change so fast I think there is one thing you can count on YOURSELF. You know how long you will be in the home and you know if you will be able to ride out this market in a new home. If you have a short term stay in mind and don't see the market changed at the end of that stay bid low... you can always bid again. If you have a great deal in front of you don't remember you are not the only buyer in the market and losing out for 10,000 is $100 a month in a payment most of the time. But that loss could be a 50,000 or 60,000 loss after the market has its up swing so you have to take it on a home by home view. I would look to a Realtor to help you in your market place. They work it every day and for buyers the fees for the Realtor most of the time come off the sellers side. More questions let me know!

Hi Joel!
Good question. As the others have answered, it is all relevant to the area. If other houses that are comparable are selling for close to what this seller is asking and the house is in decent condition then I would say this low of an offer might be offensive to the seller and you most likely would receive a counteroffer or rejection.
I would be happy to look up comparables for you if you're interested and not already working with an agent. Please feel free to contact me.
I hope to hear from you soon.

Sincerely,

Melissa Stevenson

There are no rules set in stone regarding offers, the key is to understand what the typical sales price to list price ratio is for your area. For example, homes in my area Naperville, IL typically sell for 96% of asking price. Unless the seller is very motivated or is facing foreclosure or the property is owned by a bank it would be unusual for a seller in my area to accept an offer under 88%-90% of asking price. In your situation you are considering offering anywhere between 71% and 84% of asking price. Unless you can find comparable properties in the range of your offer, it will be unlikely that the seller will accept your offer.

You can offer anything you want,but don't be surprised if your offer gets rejected.