My wife and I found a house that is way below current market value. When I called the real estate agent to find out why it was below market value, we came to find out that the house is a foreclosed home. On top of that the agent said that just today it dropped another $40k in the price and that the bank wants to get rid of it.

We are going there on Saturday to take a look at it.

My question is this;

If the house is in good shape, without a lot of work that needs to be done and it is something that we want, should we offer lower then what the bank has now set the listing at or should we just offer the listing price?

It is already way lower then we were expecting to pay and I am new to this entire process.

I am not sure what to think here.