OUr house (the first we bought) was put on the market at $297,000. That price was a JOKE and the house sat on the market for close to 6 months with NO offers. The sellers dropped the price to $250,000 (still outragous for this area) We offered 200,000. (a fair price) They countered with 240,000 we countered with 210,000 they countered with 230,000 we countered with our final offer of 225,000 (but our realtor wrote 215,000)
and they accepted. STILL too much for this house! But I loved it.
Now with all the improvements we have done (and the Stock market doing what it has done), in less than 3 years our house is worth over $300,000. But we are not selling!
If 200,000 is what you can afford then that is what you bid..... Dont become house poor.... it isnt worth it. Remember if this deal doesnt go thru.... this was not meant to be your house.... YOUR house IS out there.... it is.....
One thing we have in Illinos (dont know aobut other states) is PRE qualifying.... that often helps give you the edge over other buyers. You can do it through the bank and basicly says your good for the loan, so the chances of you having to back out of the deal is slim. ANother thing is to put down a lot of enernst (sp) money. We found that most places ask for 2 or 3 thousand.... we put up 5,000. It really makes no difference to the price or the deal or anything.... but for some reason people love to see the check for 5 grand.....
Have fun and keep us posted.