Reo counteroffer

[Diana Klauman]

Hello BP!  Short time reader first time poster.  

Facts:  

List REO price $88,900. Cash or conventional. Listed for 65 days (I know it's longer but listing was allowed to expire and then was relisted). Reduced $5,000 after first 30 days on this listing. Wells Fargo owns it. Last purchase price of home was 10 years ago for $113,000 in move in condition. Comps for the property are about $165,000, but don't think they are realistic since they are all 10+ years younger and variable in SF. Listing agent said there had been 1 previous offer but they couldn't come to terms. (Don't know how long ago it was or what offer price was. My agent asked but listing agent simply said "I dont know". Listing agent also didn't know what minimum bid was for auction). No action on property

I put in a low ball offer yesterday after seeing property-50% LP.  Cash, 30 day close, inspection contingency.  The offer works for me but I'm sure it won't work for bank.

Questions:

If I have opportunity to counter, will Wells Fargo bite if if I make offer price the same but say I will use Wells Fargo as lender with 30%down?

Should I just go up by $500-1000? 

I know this will depend on the original response but let's play the what if game.  WF comes back with $85,000.  

Thanks for your comments/suggestions! 

[Phil Z.]

- 50% is probably not going to get a counter.  It will get rejected.

- To me a low ball offer is a ridiculously low offer compared to it's true market value.  Not compared to it's list price.  If your low balling based on the list price, it might still be a true market value offer.

- They are not going to come down $10k at a time while you nudge up $500.  Your probably going to look like a giant waist of time, and they are very busy.

- The value 10 years ago is mostly irrelevant, however, it's a concern that you say it now comps $50k higher than the height of the market.   Something is not right here.