How low is too low for an initial offer?

[Taylor Walber]

I’ve just been approved for up to 200k fha and have found a 2 unit home that I plan to househack. The listing is for 185k and has everything I’m looking for In terms of location and amenities. This is my very first deal and I want to get it at the best price I can. What are your strategies for an initial offer, that I could apply to my situation? Any other tips for a first timer are certainly welcomed and appreciated!!

[Russell Brazil]

Well if the value of the property is $250k, and there are 10 offers, then even $240k might be too low. If the properties value is $150k and there are no offers, Id start at $125k. 

The list price might or might not have any correspondence to the properties value.