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How much can I undercut the bank on a bank owned property?

I am planning on bidding on a bank owned property in Cleveland. I know, I know. I live here. In either case, the property is listed for $126k. realistically, how much can I undercut the bank?

Public Comments

1. find out what % of asking price the bank got for its last 5 props and you have your answer.
2. There is no set rule, it just depends on how weak the market is and how much they think they can get for it by waiting and how long its been on the market. If you really know the market and this is about as good a deal as there is right now then 10% may be a good number (any more and they'll end up selling it to someone else - if this really is a great deal to start off). If this is just an average deal and there are 500 others available in the area, heck they may be glad to get an offer that is 20 or even 30% below their ask price. Again, it just depends on how badly they want out and how low priced the place is already.
3. go to public records and pull the tax card and deed. look to see what the previous owners paid for the property and how long they lived there and that will give you an idea of how much money the bank needs to make off this sale
4. The value of a property has NOTHING to do with the asking price so without knowing the market, the condition, the time the bank has held it, the banks cost in the unit, the population growth or decline of the area, the job growth or decline of the area, the purpose for the purchase, your credit rating, your cash availible, your experience level of real estate investmenting, the rental demand and vacancy rates for that area, the property tax rates, cost of living for the area, and a few other factors; there is NO simple % answer to your question. I personnally have bought bank owned homes for LESS then 50% of their original asking price and on others I have paid FULL asking price. WHY do you want to bid on THIS house? THAT is where you need to start and see what the house is WORTH to you and not what the bank thinks it is worth.