Yeah, this is such a tough market! I'm sure you've already figured this out by now, but I thought I'd chime in. Statistically, we have seen some "traditional" sale properties that sell for a more robust price than those that are "lender mediated" in some way. But, as the market continues to decline (even if slightly) sellers know they have to stay competitive, so they are having to buckle under to what the lenders/banks are doing in pricing!
Makes me sad for these folks who purchased with the idea that they wouldn't have to have their stomach's churning about it this way, but it's what's really happening right now.
Let me know how this worked out for you!!!
This isn't necessarily true of traditional sales. If they don't have to move, they won't reduce the price to match a REO listing. Plus REO listings are often in poorer condition and will often have more hurdles for buyers to jump before acceptance and closing. And remember that some folks can't reduce the price due to what they may owe on their mortgage.