Ask yourself, is this the one? If it is, do you want to take the risk of losing the home to someone else who placed an offer that turned out to be a little higher than yours.
The reality is, if this is an opportunity, other people are viewing it that way as well.
The "Eckler Team"
Don't be afraid to make an offer regardless of how close to FMV it may be. I always advise my clients to counter-offer and try to work with the buyers even though an offer may seem ridiculous or out of this world. If a buyer and seller agree to a price and if an association (if present) doesn't excercise their right of first refusal (if in condo docs) then congratulations. Unfortunately you are dealing with the banks on a short sale and outside of additional special short-sale documents that are required, you may be waiting several months or longer for a decision especially if the offer is very low.
Basically, the sweet the deal for the lender, the better. But, is it worth it for you regardless of market value, comps, tax records, etc. . . That is it's true value.
There are a few must haves when submitting an offer on a short sale. I will gladly share my info with you if you like- just e:mail me direct.
BPO Broker Price Opinion
Congratulations for your choice, it's a great time to buy now.I am working on a short sale right now and we are in a muliple offer situation, i think the closer to the asking price to better the chance you are going to be on the top of the pile (offers) be patent and good luck to you.
Don't even look at the listing price to make your offer. A lot of short sales are listed below the price the bank will accept because there is no way of knowing what that "magic" price will be until offers come in and the bank does its due diligence (appraisals and research).
Remember that once your offer is in, other offers can continue coming in and the bank will ultimately choose the highest one or even counter above asking if that's what the market calls for.
We are going through a short sale right now where the bank countered higher than listing and there are several offers which we cannot know how high the highest is.
It's not easy and be ready to wait. On a positive note, you may end up with a great property under market value and patience will pay off.
Take a look at this article I did on short sales and hope it helps.
Short sales are tricky. Don't get emotional about this. Have a 2nd and 3rd choice. You are the buyer and in todays market, you are in charge. I think 180K initial seems low, but what do you have to lose?? Get your agents opinion, follow you gut and ask yourself how much you really want the house. If this is "the house" then the worst that happens is you have to come back with another offer. Sounds like you have done your homework. A lot also depends on your financing. If you are a cash buyer then lower the offer to 170K!!
Good luck. If you need any help, you can email my operations manager at firstname.lastname@example.org
The Schaffer Realty Group
You are quite correct, that this is the optimal time to buy real estate. It is very hard to answer your question without knowing where the property is, whether it is a single family home or townhouse, etc. Generally, the "list-to-sale" ratio is 8% to 10%, depending on the area, so an offer 20% below asking price is not unreasonable at all. Again, I would need more information.
A big question comes to mind: Why isn't your realtor answering these questions for you? Doing that kind of research and helping you with an offer strategy is his/her job!