Put yourself in the shoes of the property manager who holds the REO and offer him what makes sense.
If it turns out that the manager can't make that happen, you'll hear back and you can adjust accordingly. Since every property has its own characteristics and history, no one can give you advice without studying the property first. Even so, it's your call what to offer.
It will take some time for that neighborhood to recover from all the foreclosures.
Don't let the asking price fool you. It could be too higher or too low.
By now you've probably seen 20-30 other similar properties with your Realtor so you should have a good idea of value. Of course, you also know that you should ask your Realtor for recent sales in the same neighborhood to help you determine what you want to offer. Also if the house has been on the market more than 30 days then it's absolutely overpriced--especially with the imminent deadline for the $8k and $6,500 IRS Tax rebates.
The other agents have given you great advice. There is no magic number for any lender. Each situation is different so the best you can do is arm yourself with an agent who knows the area and can provide you with market data and negotiate on your behalf.
I'm going to assume you are considering the "Recent construction, executive estate home on 1-acre lot previously listed at $789k". Location Location Location. The location of this property is an even greater factor than most other homes, and location is always the biggest factor in the value of any property. If you intend to live in this house yourself, you better like solitude for the next few years. If you intend to flip it, then you need to know the market value, not just what the seller may take for it. This home has been on the market for a couple of years and hasn't sold for various other prices as low as $465,000. After location, the next factor is condition. After going through foreclosure, at least once, and sitting vacant since it was built, what condition is this property in.
If you would like more information on this area and this property, please contact me.
Make it a great day!
Realtor, ABR, E-Pro, GRI
Contrary to media reports, banks are not selling inventory for pennies on the dollar so you'll need a good understanding of market value for this property. We take things like condition and the length of time on the market for this and other available properties into consideration too. If you need assistance I'd be glad to help. Feel free to contact me directly at 469-450-1326 or firstname.lastname@example.org We're offer listing discounts to our buying clients through April 30th too!