buying a house

this may be a silly question, but I believe typically you dont offer the asking price (am i wrong?) assuming there are no major problems (meaning you didnt find out you needed to put 100k into the house to fix it up) how much lower of an offer should you make?
example: a house is asking 349,000...what would you offer?

Re: buying a house

Depends on whether the house is priced correctly for the market. What are similar houses in the area selling for?

You can offer what they are asking, if the house is worth that to you.

Re: buying a house

There is no set formula or one-size-fits-all rule to answer your question.

What you pay for a house depends on 2 things -- (i) how much the house is worth to you (assuming you can afford it), and (ii) how motivated and realistic the seller is. Some sellers NEED to sell quickly, and some are just "testing the market" and waiting to get "their price." There's usually no way for the buyer to know that going in.

As far as current market values, you really need to look at recent comparable sales (same style house, same basic size and property size, same condition, same neighborhood and school district) to figure out how the asking price compares to the fair market value. Some houses are priced to sell, and those houses sell quickly and often get multiple offers, even in this market. So if a house is a GREAT deal, you'd want to offer close to asking or asking. Some people insist on listing their house at a way too high price point. Some people are in between.

It's important to be informed and educated about the market you are considering buying in (and a good real estate agent can help you with that), but you also shouldn't negotiate or make lowball offers for the sake of negotiating. Not every situation warrants it.

Let me know if I can help you -- even just to answer questions about the buying process!

Re: buying a house

We paid asking, because the house was priced well for the area. I don't think there is a formula for offering x amount below asking, since, as Christine said, there are so many factors involved (IMO most importantly, whether the house is priced fairly).

Re: buying a house

I would first look to see how long the house has been in the market. If it's an awesome house that's been listed for a very short period of time I'd offer close to asking.
But i'd NEVER offer asking price in this market unless there are multiple offers.

I've been following houses for a few months and have seen houses sell in 1 week for less then asking. At 349 I might go in with 330/335 or so.