Finishing up last week's topic, here's my final "dig" on low-balling. It may work if you have cash and you're dealing with a bank. Otherwise, it's not a good buying strategy.

This is why: A listing price can be determined for any number of reasons. A seller may not want to "leave cash on the table" and list the property 20% over market value. In this case, an offer 20% under list price may be right on the money. It still doesn't mean it will hold up to the seller's expectations.

In reverse, it's possible the property is intentionally listed under market value to generate high interest and multiple offers. Therefore, an offer below or even at the listing price will not secure the property. It won't even be in the running.

Always use comps….and an agent who knows the market. If you are shopping in the Bay Area, there are some repressed areas….and others that are in high demand and still selling like hotcakes. If you'd like to watch the market, go to our real estate site and sign up for a private home search to see what's available in your price range.