Best of luck to you and don't hesitate to call if you want more information!
I would suggest you writing up an offer ASAP so that the seller knows that you are interested before it is too late.
When dealing with a bank however there is no emotion tied to the property, its a number-so making a low offer wont likely truly hurt anyone in the process. I am always more willing to make low ball offers on bank owned properties for my buyers because of this. The worst thatusually happens is they ignor the offer and you have to come up until you get a response.
However when dealing with personal property it becomes more important to treat the home you are making an offer on with a more gentle and thoughtful approach. Doing your research and making sure that you have legitimate case for presenting a certain price is more important because if you present a low offer, without solid grounds, you could offend the seller and they may not be willing to counter or sell to you period.
Banks are more logical- the longer the property has been sitting the more its costing them and the more likely you are to get a counter or acceptance to a low offer.
Given you have all cash to close, I suggest making a solid offer at a price you feel comfortable with, and a fast closing (7 days as an example) Keep in mind banks are already, as a rule, pricing their homes at a good price to elicit offers. If your agent can submit a CMA with a good case on the price you are offering you have a better shot as well.
I hope this helps. Let me know if I can be of any future assistance to you - Cheers!
Cash helps when similar priced offers to yours are financed, but a financed full price offer with a solid down payment will beat a much lower cash offer.
You write that the estimated value is higher than the asking price, whose estimate? Zillow, Eppraisal and other automated valuation sites are easily 10% off more often than not, so don't rely on that data. Tax assessments can be all over the map too.
To make a decision on how much to offer have an experienced agent run a full Comparative Market Analysis of similar sales in the area. This will give you the best basis to decide how much a home is worth. Than make an offer based on how much you want the house. Well priced homes are selling quickly in a competitive market. We see buyers miss out on 2 to 3 homes they wanted because someone told them to write very low offers while another buyer paid what a home is worth. Best of luck.
Any thing is possible but for a recently listed foreclosure, the bank is likely going to hold out at least a month for a minimum "full price" offer.
If the home is desirable and priced well below its current market value, waiting may create distance between you and this opportunity.
Please click the link to see my blog with a complete list of tips and advice on buying bank owned homes
good luck with your offfer
By the way, most REOs are priced less than market value to attract the biggest possible target audience.
Have your realtor research how much the property foreclosed for, what the comps are, if there's competition. Cash talks (but make sure your terms and conditions are attractive, too --- for example, no request for repairs because REO banks will likely say no).
Then go for it!