To "bid" would imply an auction sale. If you're looking at auctions then the answer would be "no". All auctioneers have a minimum bid, when applicable meaning instructed by seller/bank, that they will not go below, it's a starting point.
If it's a regular sale, distressed or otherwise, then you can offer anything you want. The main thing to remember is if your offer is too low you may just price yourself right out of the competition/sale. Sellers will sometimes not even consider you a serious enough buyer if you come in with something that is so low it's offensive. Offers should always be backed up with comps.
It's important to know what to offer/bid. All sellers, be it auction, distressed or non-distressed, are looking to get fair market value. That's the bottom line. It's not a matter of "feeling like you got the best deal" it's "knowing" you did. The flip side of course is over paying if you don't know what the fair market value is.
Hire a buyers agent, we're at no charge to you. You get a wealth of expertise & knowledge all working to your advantage. If you're interested I'm available.
My best professional suggestion is for you to hire a good buyer realtor who can assist you. As a buyer, this assistance costs you nothing and you can get the information you need to make a wise purchasing decision based on the right price.
There are many models for selling bank owned homes through the bid process, some utilize a early priority time window, followed by 'best offer' bidding. In any case, your strategy of low balling a foreclosure is a sure formula for not acquiring real estate. The foreclosure market is very competitive and the low offer and hesitant buyer seldom experience success.
real estate agent run comparables from the Multiple listing service for you in order to make a offer that is
going to work for you and with your pre-approval or cash which ever you are going to use to pay for the
property. Debbie Bergthold-Smith Classic Real Estate 708-267-5552
That is an excellent question and one that we, as agents, are posed almost every day. In the REO space, the easy answer is "yes," but one can not simply pull an arbitrary number out of 'thin air' or wantonly under-bid a property.
I counsel my clients to do more research as part of the bidding process and, in fact, more times than not, we reverse-engineer an offer by backing into a number based upon market research.
This research will consist of (among other things) a proper CMA detailing closed sales activity in the subject property's immediate market area, assessing the amount of work needed to bring the subject back into habitable/finance-able condition and identifying the type of financing to be used for the acquisition.
There are buyers out there whose MO it is to try and rape & pillage on every deal in hopes of capturing every available dollar of upside, but more often than not, those low-ball offers are rejected out of hand by the corporate sellers as insufficient.
Of course, occasionally the screaming deal of a lifetime will surface, where you just close your eyes and buy it at full asking, but those opportunities are few and far between, so a healthy dose of good old fashioned market research with a sprinkling of your broker's knowledge thrown in for good measure is a recipe for success.