REO Square Footage percentage % reduction?

REO Square Footage percentage % reduction? Is there a standard percentage % reduction to use when making an offer on an REO property? I'm looking at a REO in a coop w so-so financial history. The purchase would be AS IS and ALL CASH. I found out that banks wont loan on the building, and on top of that the property is an REO. The financial situation is bad, but they aren't going bankrupt. It seems... [more]

REO Square Footage percentage % reduction? Is there a standard percentage % reduction to use when making an offer on an REO property? I'm looking at a REO in a coop w so-so financial history. The purchase would be AS IS and ALL CASH. I found out that banks wont loan on the building, and on top of that the property is an REO. The financial situation is bad, but they aren't going bankrupt. It seems like they are chugging along. Its just that this probably isn't the safest investment. I figure it is worth the risk, and that a bankruptcy and foreclosure on the whole cooperative in the near future is not likely. My hope is to buy and then sell in 3-5years. The apartment is in terrible condition. It needs a complete renovation. NO appliances. The bathroom, kitchen and flooring all need to be replaced. The kitchen is missing fixtures such as the sink. There is also a hole in the ceiling in the bathroom. I'm figuring about 10-20k in renovation. I want to make an offer, but don't want to pay what the Bank has listed. It looks like the bank has done a 10% reduction from standard pricing. HOWEVER, the bank has basically ignored the fact that the property is a gut renovation, not mortgageable, has a bad financial history, is ALL Cash and AS IS condition. 10% doesn't seem like a reasonable price being that the resale value is greatly affected by the coops financial history. I know I can offer what ever I feel, but I want to be taken seriously. What % do you think is a reasonable offer? Thanks for your time! [less]