Further, how do you know what the other offer is? Could be the other offer was "full price" at $99,900. Or somewhat higher, but not $110,000. Be careful you're not negotiating against yourself: Your competitor bid $99,900, you bid $110,000, and now you're raising your bid.
So, figure out what you're really willing to pay. Make sure you know what the house is worth. Then submit a bid at the lower of those two amounts.
Hope that helps.
Thanks, Todd Norsted
Without knowing what the house is worth it's impossible to know how much to counter. Have your agent do a market on what the house is worth now and what it will be worth once you repair it. Don't go over 80 percent of what the CMA says to worth right now.
Michael Doyle Realtor
I have never had a bank counter offer if the offered price is more than the asking price. In this case, they have always just taken the best offer available. I have only had two clients offer over asking price on foreclosures. One got the home, the other did not.
Ultimately, as already stated, what is the home worth and what is it worth to you. Those are the most important figures.