Figuring out an offer price

[David Roberts]

I recently put in an offer on a home to purchase as a rental property and I think I was too low.  I'm just wondering if someone could walk me through their thought process and considerations on how they come up with their offer on a house.

This particular house was a private owner who inherited the house.  Their mother lived there.  It was well kept.  It needed new carpet, and it had wallpaper on every wall in every room, so I was going to have that stripped and then paint all the rooms (1000 sqft slab 3 bed 1 bath home).

Otherwise, it was ready to go.  They were asking 79k.  Other comparable homes were asking 85-90k.  I offered 70k, and was thinking to come up to 75k but I didn't get a chance to offer again as another offer was submitted and accepted.  I guess I was hoping the owner (who lived out of state) would just want to unload it.

The other very comparable homes in the neighborhood are listed for 85-90k.  I used zillow to research all recent sales in the subdivision.  No homes in the past 3 years have been sold for more than 75-76k.  I don't want to be the first to pay 80k.