$58,000 less seller paid closing costs is really low and I doubt the bank would even counter that offer. You'll never know until you try however. Also, if you're going to use an FHA loan, be sure that there is nothing that would prevent it from appraising. The missing water heater may prevent it from FHA financing and the bank most likely will not replace it. There are a number of other things you'll want to watch out for so I would suggest that you work with an agent that has plenty of experience working with bank owned homes.