I think it is absolutely reasonable, considering the current market dynamics, to offer a price equal to mean value before the onset of bubble. So, take 1999 or 2000 base price and add a 5% yearly inflation and make an offer if you like the house. If the seller rejects it, you can walk away completely guilt free. Alternately, look up the most recent pre-bubble sale price on zillow and add a 5% p.a. rise.

I think this strategy is absolutely a waste of time. 5% per annum inflation since the 1990-2000 time frame? That may be a reasonable price once this bubble is done deflating, but today sellers can do much better. They may be having trouble selling because they think it’s still 2005, which it isn’t. It sure isn’t 1999 plus 5% per year inflation either. Not yet.