Having successfully negotiated short sales with banks I can tell you what the bank is looking for in terms of price. They are looking to recoup a minimum of 85% of their perceived market value. The question is what is their perceived market value. It is usually provided by a Realtor who will provide to the bank a Brokers price opinion. Your realtor should be able to meet with the banks realtor to show them the house and exchange information so that you are providing the right facts to the bank. If your realtor knows the market then chances are that you can get at least a 15% discount to market.