How much would you try to ask off the asking price of a home these days?

Question

The house we are looking at, they are asking about $142,000, but there is a glut of homes for sale in our area.

I'm thinking we could start the bidding at about $110,000 and they cover the closing costs.

Do you think this is too much?

While I understand this is a lot off the price, I think they might be desperate because they want to move to Florida.

Plus, we are renting, so I think we are prime buyers right now because we don't have a house selling contingency.

Answer 1

77% of asking price isn't considered a serious offer.  I'd laugh your offer out the door and wouldn't talk to you again (until your first offer was over 90% of asking)...

So, let's see, yes I think that kind of discount is way too much, however...

The real key is to get a comparable market analysis and find out the true market value of the home.  It might only be worth $110,000 and then your offer would actually be fair.  

You also need to know how much they paid and when they bought it.  There might be a magic number for them to get out of the house and you might be below it.  You need to know how long it's been on the market.  There is a lot you haven't told us to give us an idea of whether or not your offer is fair, but on the surface, it doesn't look like a good offer.

good luck!

you can always offer it, but be prepared to have them say NO very emphatically.

Answer 2

It shouldn't be guess work.  Are you working alone, or do you have a Realtor?  If you do have an agent then he or she should make a comparative market analysis (CMA) of homes sold, and homes for sale in the area and base on the condition, amenities and size of the home you want to buy, come up with a reasonable offer.  That is the only way to not insult the seller with a low ball offer.

Answer 3

Never hurts to ask- the worst thing is they say NO and you put another bid in.

I personally would say NO to it- I won't cover your closing cost on a bid so low.  120,000 and closing cost- I personally would take it as a seller who also is looking to move out of the state.