what you did sounds perfectly reasonable to me....if everyone looking to buy did something similar to said real estate agent, what are his options other than to go back to the seller and tell them to adjust their expectations.
$500K is a discount of about 21.26% on the asking price. It's not ridiculous. If property in Perth follows it's current trajectory by year end average decline will be 9.8%. If we see the same pattern in 2012 it could be 20%+.
Maybe wait it out and see how the rest of this year unfolds........????
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