How much impact does an all cash offer have on an REO?

[Matt Gee]

I know this doesn't have a succinct answer, so I'd love to hear you anecdotes.  

I have heard only generalized stories, saying that basically all cash is better, you can get it for less, less garbage for the banks to deal with, fewer potential issues, etc.  

Say a home is listed for 50k, how much more play would you feel you had going in cash, does it really matter?  

[David Zamarron]

Matt: It depends on the REO entity. Federally backed organizations like Freddie, Fannie, HUD and the VA generally negotiate 5-10% off asking price. They typically consider price adjustments in 30 day cycles so if you don't get your price, track the last price reduction and stand-by for a lower asking price. The non-governmental REO entities in general are more aggressive. This is where a good rapport with the listing real estate broker is crucial. Occasionally the asset manager will encourage them to bring all offers. You want to be first on the call list when they get this call.