On Fri, 14 Mar 2008 17:25:20 -0700 (PDT), wrote:


I'm interested in buying a home in IL, first time home buyer.
There is a home came out as fair condition and is priced $195000.
My realtor said it is 'a bit under priced' didn't exactly mention how
much.

My realtor wants me to put as much earnest money as possible to get it
closed as quickly as possible.
He also believes that will help him for negotiation process.

In this market condition - I heard it is buyers market, what is the
reasonal amount for earnest money?
I was thinking that I can put $5000. Should I put more or less?
Also, my realtor is thinking about making initial offer for $180,000,
expecting to close the deal
around $190,000. My realtor explains that though it is buyers' market
and for some houses, those come out
as discounted as much as 20 - 30%, however that would be rare for the
housing market that I am interested in,
under $200,000. In usual situation, I would agree with my realter
100%, however, in this given market condition, I'm not so sure,
feeling that I could demand lower price; however, on the other hand I
wouldn't want to scare off sellers that I'm getting a bit tired of
home buying process.

well, this pretty much sums up my situation.
Do you think that I could demand lower than or around $180,000?


Of course! There are so many factors involved. If you can walk away
from the deal or you have this attitude, you have much more
negotiation power. If the seller needs to refinance soon or needs the
money desperately, you have a better chance at a lower price. About
1% earnest sounds right, but you need to ask the real estate agent.