You don't mention the price range that you are working in. That makes a big difference. At the low end, say under $50,000, most decent bank owned properties are now selling for list or more and they are selling fast. As the price goes up, the ability to start under list goes up. I've closed several bank owned in the past month and they were all in the $100k range and all were a little under list.

Work with a realtor, they'll hep you make the best offer.

Good Luck,
Mark LeMenager
Weichert, Realtors - Hallmark Properties

In meetings I have attended recently we have been told that if a buyer makes a higher than full price offer the banks are now having the buyer sign a statement to the fact they the buyer will pay the difference between offer price and appraisal, if the appraisal comes in lower. That will work IF the buyer is paying cash and IF they decided they want to pay the difference. But we all know that if the buyer is getting a mortgage then their loan cannot be for more than appraised value, and the buyer would need to pay the difference. Why, in this market, would any buyer want to do such a thing?

On my experience, just to get your offer accepted you must offer above asking price. Then once the offer is accepted, and the appraisal is completed. The bank will likely come down to the appraised price, which is usually pretty close to the initially advertised price. So It is a game of give an take. The important thing is to be the one offer allowed into the game.

Tony Vega http://www.SearchKissimmeeHomes.com
avegapacheco@aol.com

Kevin's answer is essentially on point. Beyond that, three recomendations,

Work with an experienced and skilled Broker who does a lot of bank transactions
Have your Broker put together a neighborhood analysis of the area you are purchasing in
The condition and price of the home will greatly determine the recommended negotiating strategy.

If you would like further information or professional assistance, please feel free to contact me.

Sincerely,


Marty Kaiser
Broker/Associate
Keller Williams Realty
marty@floridasells.com
407-595-9700
Accredited Buyer's Representative(ABR)
"Excellence, Experience, Enthusiasm & Ethics"

This may sound crazy, but if the home is priced well, and is in decent condition, many bank owned homes are going to list price or better. If the place needs some work then a lower offer could be accepted, but it really is the bank's decision on what they will accept, no matter the condition. At this point in time roughly half the closed sales in this area are cash deals..