There is no definitive answer to this question, because there are so many factors involved. While 25-35% below asking is a big difference, it often depends on whether the property was overpriced to begin with, whether it has been on the market for a long time, and how motivated the seller is to sell. If you are working with a buyer's agent, that person should be able to give you an idea of how the home you are interested in compares with other properties which have sold. Other agents may disagree with me, but depending upon circumstances such as I mentioned above, it may be worth it to offer a low bid. The seller can always say "no thanks, I am insulted", "here is a counteroffer", or "Sold!"