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.

Check out this beautiful home in Tuolumne county!

23805 Yellow Pine Road, Twain Harte - Scenic views abound from this 9-year new home on 0.72 acre. This tastefully decorated 3452-square-foot home is a unique opportunity for a large family or owner seeking income property. The tri-level floor plan has a spacious living area—totaling 4 bedrooms & 4.5 baths—split between a main living area & private, lower-level guest quarters. Enjoy more than 1300 square feet of decks on the three levels to catch peaceful sunsets & mountain air. Inside you’ll find the special touches of high-quality Grohe & Kohler bath fixtures, dual-furnace forced air heat with two separate air conditioning units & all rooms wired for Satellite/Cable TV, telephone & CAT-5. Plus, all bedrooms have en-suite baths!

This home is $150K under appraisal price, and an excellent investment for a retreat property. Rent out one or both levels during your off-season, and bring the extended family over for a vacation!

Visit our real estate site for more details on this beautiful home. Click here to view the virtual tour.

After doing a market analysis you'll know where comps in the neighborhood are and have statistics to back up your offer price vs. the listing price. Ultimately an offer must be at a price where the seller's needs are met–perhaps not expectations–and ensuring the property will appraise.

There's nothing gained by offering a price so ridiculously low that you'll burn bridges with the seller. Or, offering a price so high the house will never appraise, ensuring you'll never get the loan approved.

Far better to write a strong offer at a fair price that is more attractive than a low-ball offer.

18871 Tuggle Place, Cupertino

Wow! This home is perfect for an extended family with 6 bedrooms and 4 full baths. Three ground-floor bedrooms downstairs, two of which have private entrances and would be perfect for in-law or guest quarters. Upstairs there are three more bedrooms–one master and the other two are a jack & jill suite. Beautiful kitchen with maple cabinets, granite counters & stainless appliances. Marble and granite in all baths, inlaid exotic hardwood in formal living room, air conditioning, central vacuum, and more!

Check out the virtual tour. For more details on this property visit our Real Estate site and check out Spotlight Listings.

So, if you're dealing with a "normal" sale, what sets the strategy?

Find out why does the seller wants to sell. Some of the main reasons homes are sold include: job relocation, divorce, downsizing (need for less space), upsizing (need for more space), financial problems, relocating for retirement, health reasons, or a death in the family.

Next, how motivated is the seller? If the sellers are not very motivated, you can expect a tough row-to-hoe if you want to “get the best possible deal” or you're thinking the house is a candidate for a low-ball offer. On the other hand, the more motivated the seller, the better the opportunity.

Now, when I'm talking about a "better opportunity," I am not suggesting that's a low-ball candidate. Any time before you make an offer, a market analysis should be performed.