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What would be your opening offer on this home? (1st time home buyer)?

I need your help! Any help would be greatly appreciated. I am a first time home buyer and am interested in the following home. Please give me your best opinion on what to open my first offer at. Home information: Listing ticket can be accessed through www.realestateone.com MLS# 27147244 26417 Midway St Dearborn Heights, MI 48127 $ 149,500 3 Bedrooms, 1 Full Bath, 1 Half Bath THIS HOEM HAS BEEN ONT HE MARKET FOR ABOUT A MONTH NOW AND THE HOEMOWNERS HAVE REDUCED THE PRICE BY $10,000 ALREADY! I WANT TO GET THE BEST DEAL POSSIBLE WITHOUT SPENDING A TON OF MONEY. PLEASE BE AWARE THAT MICHIGAN IN RANKED 2ND IN FORECLOSURES SO THERE ARE A LOT OF HOMES OUT ON THE MARKET!

Public Comments

1. I'd offer them $140,000 and then come up. If you really like the property, you can count on it appreciating eventually even if the market stinks right now.
2. Most homes sell for what they are worth in the marketplace. I hope you have a realtor. A realtor can give you a market comparision to tell you what comp homes in the area are being sold for, and what the house is worth. They will also advise you of where to start. A low ball opening offer can often kill a negotiation, as the owner can get upset about your offer. Usually if a home is priced correctly, an offer that is 90% of asking is a good beginning point. You can find out if this house is on the verge of foreclosure by going to town hall, and checking for liens on the property.
3. Quick tip: Get a mortgage commitment letter so you have some power in terms of the owner KNOWS you have funding available and they will not be waiting ages for your bank to approve your loan. Offer $30K under asking price....then come up from there. Problem is, once you start high, you can't go down...start at an almost laughable price and work your way up and keep waving your commitment letter at them!
4. I like what Martin has to say. I would go for deals like them paying closing costs as well. Offer 135,000 and seller pays closing costs. Are you working with a realtor? If you are they should be doing all of this for you. If you are not....they can most certainly help. Remember the selling agent is working in the best interest of the seller. So if you decide to get an agent get your own. Make sure that you also have the home inspected so there are no surprise costs after moving in. Good Luck to you and Congrats for your first time home purchase. P.S. Patrick and Jeffrey also make great points!!!!
5. Think about it this way, just because they lowered the price 10K does not mean anything orther than it was over priced and the new price $149,000 maybe also. I do appraisal and I look at MLS price history and are seeing home that were listed way over priced due to homeowners thinking their home is worth more than it really is, and have reduced the price 3 or even 5 times by thousands. Have the house appraised (cost $300-450) and find out what it is worh. That way you are not guessing what the market value is, and you may save thousands or at least you will not over pay. You don't have to show the appraisal to anyone unless you want to. Also in this market with few buyer and lots of home on the market you can buy below market, but stop guessing. Hell you can offer $100K if you want and go up from there. But you need to know the market value first.