You can negotiate directly with the bank in the pre-foreclosure stage, via the short sale process. After the foreclosure is complete, it has been our experience (north florida) that the bank either lists the property with a realtor or sends the house to auction. If you can find out who the REO real estate agents are in your area, I think it is smart to build a relationship with them. Let them know that you are a cash buyer, will close quickly, allow them have both sides of the realtor commission, etc. ..... something to make them remember you and know that you are a serious investor. At least in our area, these are very popular people, so you have to find a way to set yourself apart and get the first shot at the deals when they are brand new.
I agree it is all about volume - as the banks find themselves with more and more property, the prices they are willing to accept are going to change. The listings we see are not always priced well (too high) but, as we all know, that doesn't mean much. Make an offer.....you might be surprised what the banks are willing to accept. Explain to the realtor how you came up with your price and ask that they present that information to the seller (bank). Again, make it an attractive offer.... cash, quick closing, etc. Banks just want their money back so they can get it back on the street.
I agree it is all about volume - as the banks find themselves with more and more property, the prices they are willing to accept are going to change. The listings we see are not always priced well (too high) but, as we all know, that doesn't mean much. Make an offer.....you might be surprised what the banks are willing to accept. Explain to the realtor how you came up with your price and ask that they present that information to the seller (bank). Again, make it an attractive offer.... cash, quick closing, etc. Banks just want their money back so they can get it back on the street.