Low-Ball Offer on an REO thoughts?

[Scott Bartlett]

I just put in my first offer on a REO property owned by Chase Bank.

The property has been on the market for 148 Days.

The property was listed around October 12th of 2012 at $25,000.

45 Days Later, the bank reduced the price down 4.8% ($1,200) to $23,800.

47 Days Later, the bank reduced the price down 4.6% ($1,100) to $22,700.

35 Days Later, the bank reduced the price down 4.6% ($1,100) to $21,600 which is the current asking price. This was lowered on 2/16/13.

The bank appears to not to be very aggressive in their pricing to sell the property over the 5 months of it being on the market.

The property is in bad shape, but the major cost items of the house (roof, foundation, furnace and ect) are all in GREAT SHAPE, however the inside has been torn up badly, and about 50% of the windows have been knocked out, which have been boarded up by the property management company.

So, I put in an offer on the property around 1 PM on Monday, March 11th, for $12,000, 55% of the asking price, because I only have $13,000 in cash and I wanted this to be an all cash offer.

The question is, did I low ball the offer too low? I have not heard back from them yet, but should hear back sometime today or tomorrow, hopefully.