REOs: How low can you go?

[Rachel Gill]

I'm on the hunt for my first deal and feel a bit confused about bank owned properties that are in foreclosure.  I'm finding many listings for these properties at a close to retail price, but can tell from the online pics that they need full rehabs.  Will banks entertain a much lower offer than what the listed price is?  

[J Scott]

These days, it's tough to find great deals on REOs in this area (Maryland). A couple years ago, every REO was priced pennies on the dollar (it was a good time to be an investor), but these days, any publicly listed properties are going to have a lot of buyer competition and sell for around market value. Unfortunately...