Pricing in declining housing market

[Alice Smith]

Hi all,

Currently looking to buy a single family home for short term rental. Given the declining housing market, how have people been adjusting their bid offer? Are people trying to bid lower than the asking price? Obviously this depends on the situation. But what is considered to be a "fair price"? Looking at zillow and taking the average of the current estimate and the estimate 2 years ago before the pandemic? 

Thanks.