You will be well rewarded if you do some homework first. Know your budget; both pre & post sale. In the absence of an inspection - expect the worst & plan accordingly: plumbing, roof, electrical, etc.
Good luck to you... I am excited & hope you enjoy the process. One last thing - please get the assistance of a professional - don't go it alone!
One more thing - Be very careful of what Carrie said about 'AS IS', and that meant 'AS IS' in bank owned (REO) property.
REO properties not only are AS IS, they also don't come with disclosures. Since banks do not live in those properties and they usually assume the property or get the property at auctions, they do not have knowledge about the condition and what happened to the proprety and they are legally not reuqired to discolose anything.
They usually just want to get rid of the propery so they will not repair the property. So, negotiate the price if you can
As a general rule, bank owned properties come as is. This means they will do no repairs. Your best bet is to try to get the price right for you. It really depends on how much the bank has vested in the property. They will be hard pressed to take a lower price that what is owed. If the property is represented by an agent or other entity contact them and try to negotiate the price you want. Depending on the status of the foreclosure, it could go to sheriff sale. If they bank does not get what they want at sheriff sale they will take it into inventory. Do you know what stage the home is in?
As for the list price, it's usually negotiable. The banks flexibility is dependant on many factors such as other offers, time on market, market conditions and whether or not this particular lender likes to own real estate. Believe it or not, there are some institutions that hang onto these properties until the bitter end and others that seem to have no interest in owning a piece of real estate; they'd sooner have a write off then deal with repairs or code violations, etc.
Bottom line...the suggested list price of a bank-owned property typically takes into consideration what repairs are needed, but you should only offer what you're comfortable spending.