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How do you negotiate with a bank owned property?

I'm interested in buying a bank owned, forecloser property. A real estate company is asking 199,900 for 2 bed, 1 bath property that has sat on the market for almost a year. How would I negotiate with such a property?

Public Comments

1. Bank owned properties will have a sales agent/broker. You submit your offer through your broker and the bank will accept or reject. Your broker may have info on the offers that the bank has received and rejected.
2. Unless it is a real bargain, forget it. You will have a long draw out hassle.
3. The only way to find out is to bid and see what happens. The worst that can happen is you get rejected. Some times a bank has to hear the same low ball offer a dozen times to realize that is what they will get. RE Agent, Remax
4. Find out all the defects that are in the property, find out how long the property has been on the books, Get estimates of bringing it to current market value, then offer about 10% less of the cost of fix up and the closing cost approx. 5% and that is your offer. Unless you are in love with the property, then offer full price and enjoy!