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As DaveBarnes jokingly suggests there is rarely enough info available to evaluatee if a home is overpriced by merely looking at the cost per sq ft. -- the real factor is how the home in question compares feature by features to comparable homes that have sold. In many cases this is still not enough to really justify the price, but at least you'd be using the right tool. (Here is where folks have come to expect me to through in one of my favorite line "Would buy tires by the pound?" -- point being that if the homes has FEATURES that the seller reasonably expects will command a premium maybe it worth just forgeting about...)
The other major issue that I see is that you should be having this discussion with YOUR BUYER'S AGENT. If you don't think you need one then there is nothing anyone here can say to change your mind. Which by itself ought to be enough for you to understand why you probably should not be making any offer on this house...
Finally in my experience it is usually best to understand why a house has been on the market for an extended period well before you spend any effort trying to make an offer well below the asking price. Often times it is possible to make a offer a little closer to reason to a seller that has been barraged with many offers far below asking by other potential buyers, but the sequence of offers and any knowledge of counters makes a BIG difference in how likely this strategy is to be successful. From an emotional / psychological standpoint the factors that motivate a seller to sit on a high price are often far more important than any financial factors...
Make an offer of $690K with a caveat that 'the buyer will reconsider if it can clearly be shown by appraisal or other that the property is worth more.' This tells the buyer that you are serious, but, pretty sure their property is over-priced, yet, willing to reasonably adjust your offer if they can justify the price. It puts the ball in their court, -- and should produce a clearer picture of why they believe the house is properly priced. After a year on the market, you might be surprised at the response.
Make an offer of $690K with a caveat that 'the buyer will reconsider if it can clearly be shown by appraisal or other that the property is worth more.' This tells the buyer that you are serious, but, pretty sure their property is over-priced, yet, willing to reasonably adjust your offer if they can justify the price. It puts the ball in their court, -- and should produce a clearer picture of why they believe the house is properly priced. After a year on the market, you might be surprised at the response.
Excellent piece of advice instead of the snarkiness!
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