Sorry for these back to back posts ... two more points.

1) If you pay in cash, your purchase won't be subject to a bank appraisal by a lender because you aren't using one.

2) If you need a loan, then you'll need a home improvement loan http://portal.hud.gov/portal/page/portal/HUD/topics/home_imp… I know that CENTURY 21 Mortgage does handle such loans.

Good luck!

My presumption, of course, is that you're just talking about negotiating purchase price.

As Mr. Garza noted below ... the bank will not agree to do any work or anything else ... money is really the only negotiating point. Also be prepared (and factor in) that you may also be paying for the cost of any other work necessary to get the house sold (e.g. fire inspection, etc).

You can negotiate A LOT. It doesn't matter how much the house originally foreclosed for ... the bank does NOT want to be a property owner.

Consider what a reasonable market price would be for the home if it were in relative move-in condition. Then start deducting the cost of appliances, putting in a new kitchen, replacing whatever needs to be replaced (is the boiler well maintained? Is the hot water heater recent?) and don't forget the cost of inconvenience for having to wait a couple months before being able to live in your home ...

The banks DO like to see large down payments and/or cash buyers because it would indicate a fairly smooth transaction (and less hassle means less cost to them).

If you need a referral to a real estate expert in your area, just let me know. An experienced Realtor would know how to manage this negotiation well for you. You aren't saving yourself by not using one much since the bank has already agreed to pay agents involved and the listing agent is not likely to help you.

With a bank, almost nothing. In Minnesota all REO properties are sol AS-IS no warranties. Sometimes, banks reapir the property if the city does not allow a transfer of title without fixing some items.

Buy you will be very lucky of the bank fix anything.

Best and Buy!

If the home needs a kitchen, you may not be able to get a loan for it.