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Please note that all the responses above came from realtors (who work on commission and are fighting as hard as they can against the perception that prices are declining which will, in turn, make people even more reluctant to purchase until prices hit the bottom). The comparative market analysis will help you determine what other properties are selling for but make sure that it is as current as possible since prices are dropping and will continue to do so for some time. A CMA showing sales from 3-6 months ago is utterly useless so it may be very difficult to judge. Try looking at as many listings as possible in your search area to see how long they have been on the market and what the prices are, you will probably see a few homes that are (despite the listing agent's diligence) laughably overpriced in comparison.

Also, keep in mind that a good price today may not be such a great price if housing prices continue to decline over the summer and beyond (there are so many articles and economists that support this a google search will probably turn up a dozen WSJ or Chicago Trib stories - oh, I just looked and there was an article in the trib from earlier this week talking about the staggering decline in home prices).

Nobody expexts to get 100% (probably hoping for 90-95% if they are lucky) of their asking price so they list it above what they really want to get and you should, conversely, initially offer under what you are willing to pay. Lastly, once you have decided on your offer don't let your agent talk you out of that number. Your money, your investment. If the seller doesn't like that number or thinks it is too low they will counter offer. Despite what your agent may tell you, absolutely no seller in his right mind will dismiss bids because they are offended at the low offer. They might not drop the price too much on their counter, but nobody is in a position these days to refuse to negotiate, especially if they are not living there and lose thousands every month in carrying costs.

Just a thought... - Thu Mar 27 2008, 10:37