The answer depends on how closely you watch sold prices.
A workable offer starts with the sold side of the market, not the wish list side. In Northridge, CA, the typical closed sale last month was $1,007,500, and I would treat that as the number that keeps an offer honest.
Last month, a typical closed sale was $1,007,500. That tells me a serious buyer needs to be measured, because the market is still closing near the million-dollar mark.
I would compare each new listing to that sold level before I make a move. I would also watch the 98.8% sold-to-list price ratio, because it tells me sellers are still getting very close to asking when the home is priced correctly in Northridge, CA.
Set your ceiling before you start.
Keep your offer tied to recent closings.
Do not assume there is extra room unless the pricing proves it.
