Bank owned REO - need help

[Eric Fernando]

I am looking to buy a bank owned property. Per the foreclosure records the bank foreclosed on the property as it had an outstanding mortgage of $186k. The bank has now put the proper on the market for $265K. There is work involved to get it to a habitable condition.

What price should I start with to offer the bank?

[Jon Holdman]

The old mortgage is irrelevant.  Banks typically won't come off their listing price very much.  They do slowly drop the listing price over time, if it doesn't sell.  

What's it worth to you?  What do the comps tell you the value is?