How much below asking to offer in sellers market ?

[Pete B.]

My neighbor is selling a house for sale by owner in our low inventory market. The house is very well maintained but dated. Was thinking about offering 25k below the 280k asking price, but don’t want to lose the deal. Don’t know what others are offering in this competitive environment?

[Ronald Allen Barney]

Run your numbers to see what price would bring you a cash on cash ROI in double digits renting it out. That math will give you your price. If your price works, you got a good deal. If they want more, someone else got a bad deal.