You can certainly put in a an offer but generally speaking asset owned property does not have that much negotiation room in the price. While the listing offer does have some obligation to take and present the offer it probably wont go anywhere at this time.
Just so you understand by the time the listing agent receives the deal there has been an external an internal BPO (Broker Opinion) performed. The bank along with the listing agent come up with a price for the property, The BPO takes into consideration the amount of work it would need to bring the property back to proper condition.
While you can save money by buying an REO the way to to come out ahead is by saving money with your construction costs. In many cases by the time the average homeowner accomplishes the work they have paid what the property was worth retail. The real advantage to REO properties, in my opinion, is that you get the house designed and decorated the way that you want it to be. You dont really save that much money versus the retail price.