There is a lot of variance in the speed and price at which REO's are sold. Reo's that are fantastic deals usually go fast and for above asking price. This can be a tough concept for a buyer to grasp, considering we are in a buyers market.
The banks often set the asking price low on desirable properties intentionally because it brings in multiple offers. This strategy will often bring them in a higher selling price than they would have gotten had they listed the price at market value. Another benefit to the banks in pricing the home low is that is causes the home to sell very quickly. Many times they get multiple offers within just a few days.
Many REO's do go for asking price or less. Those are homes that do not attract as much attention with their listing.
Good Luck Maya and Happy House hunting!
I saw this house and showed it to a client. I knew it would go fast. I previewed the property the day it came on the market and called my client. We saw it within 48 hours of it being on the market and when the agent called back they had already received 7 offers! My client decided not to jump in with an offer. It was a very cute house with a nice yard and nice neighborhood.
There are more out there like this but it takes being ready to jump and knowing where your final offer will land. The bidding is a different experience for many buyers. REOs take quick and decisive moves to capture the great deals.