How much to offer on new condo

[carolott]

Actually, if you read the whole article, it mentions high-end homes several times, and only mentions $200,000 as the average.

More from the article:

But with sales volume dropping at a double-digit rate and listings continuing to mount, economists said that the price gain likely was the result of a shift to more expensive homes rather than a sign that the housing slump was nearing an end.

In all, 3,365 home sales settled compared with 3,909 in June 2006, a drop of nearly 14 percent as homes took longer to sell - an average of 82 days compared with 51 days in June 2006.

"Our marketplace right now is like a bad weather market for sellers," said John Toner, a broker with Providence Real Estate in Columbia. "If you make a mistake in this market, you'll be punished for it more severely than in the last few years. Buyers have a lot more to choose from; they are being a lot pickier, and they have almost no sense of urgency."

[sundaze]

There is a glut of condos on the market in Rockville. Some buildings that had been intended to be condos are now rentals. Condo fees can go up very fast and special assessments are another worry. It doesn't take much to build new condos so you may be facing competition from newer buildings with more amenities when you decide to sell. If a number of owners rent their condos, it may be hard for your potential buyers to get a mortgage. I think if you want an apartment you should compare very carefully the costs of buying compared to renting, and not count on much appreciation.
One other thing, the traffic on Rockville Pike can be very bad at any time of day.
If you are determined to buy, I would say no amount is too low to offer. The market value of any place is what someone will pay for it, and condos really aren't selling well. You should not base your offer on a percentage of the asking price, asking prices can be whatever a seller wants and in a new place may be masking a lot of developer incentives (eg, paid condo fees for a length of time, "free" upgrades, closing costs, etc.)
Compare, compare, and compare some more because there is a lot out there and I think prices will fall even more.

[lscalder]

I would offer $450k-$475 and ask for clossing as well.
You have to remember that your offer might be the only offer and the seller knows that if they say no to your offer. They might not get another offer so they will counter your offer. Always offer way less then the sales prices because they will counter your offer.

[sundaze]

It really is not sound to base your offer on the asking price, which may or not be realistic. Some sellers ask way more than their property is worth. Look at recent comparables, and by that I mean places that have actually sold in the last few months, not what other sellers are asking. The condo market in Rockville is very weak.