I would tend to agree with the other agents that an offer of 500k probably would not be accepted. That being said, there is a lot of inventory in the SOMA area and especially in the Beacon. These high levels of inventory combined with the fact that this particular unit does not have the same upgrades will give you an advantage when negotiating. Also, there is currently a two bedroom in the Beacon that is listed at a similar price per sq. ft. as the unit you are looking at which should further strengthen your position.
This is not the forum for this type of question because all you'll get is opinions and if you are serious about entering negotations with the seller why play your hand in public.
The bank owned-1 bedroom you
were looking at is pretty fairly priced. The recent
comps at the Beacon show that homes have sold for
approx. $768 per sq ft. while this one is listed at
$679 per sq. ft. However, most of the the other homes
sold at the Beacon have upgrades whether it be
panoramic views, hardwood floors, bosh appliances, or
I would say that a fair price would be in the 533-545k
range due to the fact that the inventory is SOMA down
by the ballpark is high and that there is 15 units
available in the Beacon alone. Homes at the Beacon are
currently listed at around $768 per sq ft., but they
have also been on the market for over 60 days on
average. Also, there is a 2 bedroom listed at 799k
which is approx. 657 per sq. ft. An offer of 533k for
the 1 bedroom would be $655 per sq ft. and while this
2 bedroom might be an outlier, you should still be
able offer around this price per sq ft. for the 1
I am not familiar with any 2 bedroom bank
owned/foreclosures at the Beacon, but there might be
some in the area. Are you specifically looking there
or just in certain other parts of SOMA? Also, people
generally think that bank owned/foreclosures are great
deals, but to be honest, most bank owned properties
are marketed by realtors and close to market price.
The 2 bedroom listed at the beacon for 799k is
actually a much better deal. Finding a property for
below market price is really about finding an
individual owner who is looking to sell quickly or had
to make a dramatic price reduction.
I wanted to add to Melanie's information, in case you don't know what an REO is. An REO is a "Real Estate Owned" property, which means the property has gone back to the original mortgage lender on the property. Typically the lender is trying to maximize its return when they sell an REO property directly. They want to sell quickly in order to not tie up their money in capital reserves they are required to set aside for a foreclosed property, and 2nd, the management of these properties isn't their core business, therefore a headache for them to until it is sold.
So as Melanie said, they are EAGER to sell, but they also have to hold their losses to a minimum. Good luck!