Some factors I use before dropping a low-ball offer are:
1. How long has the home sat on the market?
2. Does the seller appear to be motivated?
3. Is the seller under water on their mortgage?
4. Does the offer (if accepted) make sense from an investment standpoint(ROI)? Speaking in terms of monthly rent not yearly appreciation. Also factor in the condition of the property and any repairs that may need to be done.
If all these check out than I will often go ahead and write up an offer with fair terms. This could be any type of property in any part of the city because I’m not looking for my own house at this time. In a year or so I’m sure we will all have our choice of low cost properties to choose from. As for the higher end houses and neighborhoods we may be in for a longer wait on those.
Like I said before though, lower end housing is taking a beating right now so I’m just riding this out for maybe another six months. If I can buy that 2 bed condo at 150K right now in six months it should be around 100K. Lets wait and see.
