Hi Everyone! I’m a newbie looking to purchase my first rental. Looking at a house hack deal in the northern Colorado market. We own a house here and are looking to buy a home near us for easy transition. Looking at the market I’ve noticed prices are dropping a bit and  homes are staying on the market for longer periods of time. My question is:

Is it okay to offer $40k, $60k, $80k less than asking price in a fairly competitive market that may be cooling a bit? My agent is recommending we pay asking price or just below and ask for seller concessions of 3% closing costs/ 1/1 or 2/1 but down. Is that the normal or could we get feisty and ask for $40-$80k less than asking?

Example, I found a deal the same style home as our current home early 2000’s build. It’s going for $470k single story with an unfinished basement with a bathroom. Our house is the same but with a finished basement valued at $450k and decreasing in $1k-$3k per month for the past year or more. Ideally I want to buy and finish the basement for $450k-$490k. Would offering $385k-$420k be overstepping?

Thank you in advance!