Only just started "browsing" house listings. What do you think of this?

This house has been on the market for a while and and the price seems to keep dropping by 10K. Do you think an offer of 220K would be "insulting?"

10/25/2012 Price change $239,000 -4.0% --
09/29/2012 Price change $249,000 -3.9% --
07/15/2012 Price change $259,000 -2.3% --
06/14/2012 Price change $265,000 -3.6% --
05/25/2012 Price change $275,000 -6.8% --
04/24/2012 Listed for sale $295,000 -2.2% --
11/21/2003 Sold $301,500 105%

Re: Only just started "browsing" house listings. What do you think of this?

Not an insult IMO.

Only just started

Depends what comps say. Without knowing, i'd probably start at 200-210k IMO.

Re: Only just started "browsing" house listings. What do you think of this?

Only just started

Nope.

Re: Only just started "browsing" house listings. What do you think of this?

not insulting. Enter it as an offer, and see if they counter. You can always increase slightly if they flatly refuse your offer.0

Re: Only just started "browsing" house listings. What do you think of this?

Since the current list price is $239K, I don't think $220K is so low as to be insulting. And since the price has been dropping regularly, it seems the seller is very motivated and either NEEDS to sell or really wants to (as opposed to someone who is just "testing the market" or "waiting for their price"). So I think it makes sense to be a bit aggressive with your initial offer.

But I do think -- and I always advise my buyers of this - that you always have a better chance of getting an offer accepted, and engaging the seller nicely, if you can express a rationale behind your offer. Whether $220K is a fair offer really depends on what the comps show, as someone else mentioned. I mean, the price has come down significantly, so is it still overpriced? Or is the $239K asking price pretty much in line with market value?

If you can say "we are coming in at $220K because the house around the corner which is the same size on the same size lot just sold for $220K" or "although a lot of houses in this area sold for $230s and 240s, your house has an original underground oil tank, one less bedroom, and no garage, so we are offering $220K," it's a LOT stronger of an offer than just lobbing out a lower number and hoping for the best.

In negotiations, you always have to see it from the other person's point of view. What will convince them to give you what you want?

But even for your own sake, you really want to research the local market values before you make an offer. If you have a buyer's agent, he/she should be able to do that for you, and then advise you on an offer strategy based on the research.

Good luck!