There is no set formula, however if you enlist an agent that is familiar with the area and the REO company or bank - they can help you with that company's MO (mode of operendous). For instance, there is one company that is notorious for putting a listing price up and then they will reduce it every 14 days. Another one works strictly off of "net proceeds". Yet another one is famous for holding the price for as long as 3 months before becoming negotiable, but will discount hugely if you buy in a block (several listings at once).

Lakeland is not a hard area to sell even at retail pricing. They have the most sought after public school system in Shelby County, no city tax and newer homes - which make it very desirable to many people.
After you turn to a good Realtor for the statistic and representational part - then figure out what you are comfortable with, Then put the offer in - you will never know until you actually play ball - arm chair quarterbacks are just that........

Happy home buying!

Jo Shaner
Lipsey/Shaner Team LLC
Keller Williams Realty

Pinaky,

This depends largely upon the market activity in your local area.

A local real estate professional will be able to best advise you on this topic but if the market has been fairly active in your area, plan on staying pretty close to the asking price if you are serious about the property.

Contact an agent today for their advice.

Good luck

Good Morning Pinaky,

Sorry but there no formula, set amount or percentage in these matters. It totally dependant on what you are willing to pay for the property, the condition of the property, the location of the property, the value of the properties around this property, how many others nearby are on the market, are they bank owned as well, etc. It is a give and take negotiation, the bank has said what they want for the property, now it your turn to tell the bank what you are willing pay, and the dance continues until the music stops :-)

My best advice is to contact a Realtor and let them help you purchase the property. As a buyer there is no cost to you to use a professional to represent you, the seller pays all realtor fees. Again, I recomment that you contact a Realtor to assist in this transaction. If I can help in any way please give me a call or send an email.