You have to be as close to 90% of the market value, otherwise the bank won't even consider your offer even if it's cash offer. So I suggest that before you make an offer, have your agent do a little reseach about the property.
It really depends on many factors. Your agent should be able to advise you based on what he or she knows of the targeted property. In the $80-150K range, there is a large amount of activity and multiple offers are common. If you are in this range your will most likely, be competing against one or many other potential buyers depending on the quality of the home. Speed in which you find the property and make the offer is critical. With regard to time-on-market, banks these days are doing a very good job in obtaining multiple Broker Price Opinions (BPOs) and as a result, they know where homes should be priced. In my humble opinion, banks are not likely to take an offer $20-30K below asking price right a way. However if they find that the home is not moving they may adjust the price, so keep a close eye on the target.
"Rocky" G.H. Hawrysz
Broker Associate, REALTORÂ®, e-ProÂ®, ABRÂ®
Prudential California Realty