Remember banks or any other entity owning foreclosed propeties do not reject or accept offers soley based on the price offered. The financing terms, buyers ability, as well as closing date all factor in.
Never be afraid to make a justifed low offer 10, 30, or 40 percent below asking price. It is good to have sound reasoning for why you are offering such a price. Although no hard rules as to how low an offer a bank will accept exist, you can count on the bank doing their homework. Banks understand the market condition, and want to unload property hopefully with a good return.
The final point to remember is always understand your objective in a deal.
You know a great deal when you see it, if not, you need to look at more homes.
The last REO I bought was 224,900. We offered 225,000
I was told another buyer offered more, however we were a stronger buyer, 10K earnest, 50% down, and that is the reason the bank choose us.
The home appraised on our end for 10% more. It was on the market a total of 9 days.
The trend for banks is to price them to sell, get them done. Create multiple offers. Of course do the comps for the neighborhood, check the resale and new construction.
Good day & Good Luck
I would be happy to send you the current listings in the area if you'd like to email me privately and tell me your criteria.
It is most important, though, to do (or have your agent perform) solid research on comparables and market trends.