I recently sold a nice condo for 197k and the asking price was 199k. The condo was well worth the price so even an offer of 199k would be good. My client got the condo and is very happy. A like unit was just listed for 240k a couple of weeks ago in the building. It is more likely going to fetch something in the 215k range.
I sold a great condo last weekend for 232k, the origional asking price was 274k. The unit had gotten stale and the price was dropped to 249k after several months. Because it started off too high the sellers ended up with less and the process took much longer. In condos it is much easier to price but I still see sellers asking too much. I tell my clients to wait on both ends for the correct deal. Pricing is very important and know value is just as important to a buyers agent.
Don gave you some sound advice.
Also, the price you feel is a "good deal" on a home is important too. Not what anyone else might say. What makes you feel like it is a good offer.
As an example, last year or so around San Antonio offers were 15-20% above appraisal. Today they are 5-10% above appraisal. You go higher if you REALLY want the property and lower if you have concerns about condition.
ANY offer is legitimate. Too low and the seller is offended. Too high and your agent is not doing their job. The comparison prices are key to what is a Fair Market Value (FMV) along with the condition of the property.
Christian Realty San Antonio
The rule is: Pay no more than the lower of: (1) what you can reasonably afford on a monthly basis (calculated out to a purchase price), or (2) the fair market value, established either by a CMA or an appraisal. That's Rule Number 1.
Note: The rule states: "Pay no more than...." not "Offer no more than...." So your offer should be equal to or less than your maximum allowable offer. How much should your offer be? That's where Rule Number 2 comes in: Your offer, which must not exceed the ceiling set by Rule Number 1, should be no higher than the lower of: (1) Rule Number 1, or (2) the asking price.
The point of Rule Number 1 is to establish the MOST you should pay for a property. The point of Rule Number 2 to lower your offer to (or below) the asking price if the asking price happens to be under your maximum allowable offer.
Remember: You don't even get to the listing price until you determine the property's true value. Even then, you look at the listing price only if the listing price is below what represents a good value to you.
Those are the rules.