I have seen quite a few over-priced REO properties and also quite a few purposefully under-priced ones that sold quickly in a large number of multiple offers. (30+ in one week for the few i'm thinking of) So I would say the basic answer is yes, the price is always negotiable.
What is more common, and expected, is the unwillingness of banks to offer credits for repairs once you are in escrow. Usually they will state this up front in the listing that no credits will be given.
I hope this helps your understanding of pricing and most importantly how each property is a different situation and there is often no "catch-all" rule for us to go by.
- Jeffrey White -
Sotheby's International Realty
1. How aggressively is it priced to begin with?
2. How long has it been on the market?
3. What is the percentage of REO's/Short Sales in that particular market?
4. Your strength as a buyer (cash, financing, terms, etc...)
Some buyers pay more attention to list price than value and just want a discount off of that. That is not always wise as some properties are intentionally priced under market to generate multiple offers. That is why it is important to have an agent who is familiar with the market, knows a deal when he sees one, and who can help formulate a strategy to help you get the property you want at the best possible price. If you'd like to discuss further, please e-mail: Reid@LAHomesExpert.com
If you are looking in a desirable area do not argue on the price. Good properties are getting multiple offers and over asking, sometimes all cash offers which are appealing to some lenders. People dive on them because of all the media publicity and because they are a great opportunity. In these cases, the game is to figure out how much higher you offer in order to get the property over the other offers. Get all your paperwork ready to grab the one that you will want to buy.
If the area is not so good and the house has been sitting for a while, you can offer less and give it a try.
Certified Short Sale And REO specialist
Hope this helps
First Team Real Estate