You can offer any amount you wish to offer on a bank owned home just like you can on any other property. You run into the same risks that you take when you make a low ball offer to a regular homeowner. You may risk offending the bank who has often already adjusted the fair market value of the home for the condition that it's in. Sometimes they will not repsond to a request that is too low at all. With the number of cases they are handling right now, it would be a waste of their time and yours if you are not serious about owning the property.
You also risk losing it to another bidder. Just because you put in a bid doesn't mean the bank can't hold your bid and take a higher one that may come in. They don't play by the same rules that you see with normal contract negotiations most of the time.
If you are serious about owning the property, decide if you can live without the home if you don't get it from the bank. If you can't live without it, offer them the closest amount to fair market value for the property that you can
My name is Allyson, I do specialize in bank owned and short sales properties and I have found my buyers some very good deals. There is no hard and fast rule as to what you offer on an REO I hear you should always offer 10% below or 20% below this is simply not true. The way you determine price is by the comparables, how nice is the home? is it in a good neighborhood? how are the schools? Remember that if you think it's a nice home so will everyone else. I have written many offers on nice REO's recently and every one of them was a multiple offer situation so it all depends on the home you wish to offer on. There usually is room to negotiate especially when there are no other offers on it. You might want to even ask for some money back to help with your closing costs. You would be wise to chose a realtor that knows what they are doing.
I have a web site where you can check me out and if you like put in a search just for bank owned properties it's FREE!
You can check out my web site at http:// http://www.homesbyallyson.com and set up your search or just email me with your needs and wants what price range and area or areas you would like to search in and I will set it up for you. You will receive up to date listings as well as any changes in price or status.
If you need any assistance or questions anwered feel free to email or call me.