Smaller homes normally have a higher per square foot cost as compared to larger homes. You can compare the averages of similar sized homes and make an offer accordingly.
DAYS ON MARKET (DOM)
Homes that sell within 2 weeks of listing are most likely in a seller’s market. On the other hand, homes that stay for at least 60 days are probably in a buyer’s market. The greater the DOM number is, the lower you can go on your offer price.
If you are in a buyer’s market, you will probably face less competition from other buyers and the seller would be more likely to accept a significantly lesser value than his initial asking price. In a seller’s market, the tables turn and you would need to make a strong offer in order to stand a chance due to increased competition from other prospective buyers.
A look at comparable sales
of homes with similar square footage, the age of construction, location and configuration can help a great deal in making the right offer. If similar homes are selling for under the list price for past six months, it might be likely that the seller will accept a lower offer than the listed price.