I wouldn’t take it as a given that the bank won’t deal with you. I think you have nothing to lose by being assertive with low offers. Maybe it will help keep you on the sidelines until fate deals you the house you are really hoping to find at a great price or maybe you will get something started with your “low ball”.
In your case you are looking for an above average home and for quite a few things in and about it to satisfy your personal tastes and perhaps those of your wife. You are also reasonably price concious.Because of this combination, you probably ought to offer as low as you want to on all and all homes you find that you like, including short sales. If you were looking for a more average home I would say focus on REO only.
If I were in your shoes(having read most of you posts) I would write low offers and move on. Go back to the properties that you have liked enough to offer on several months later and ask the sellers “what do you think about my offer now?” I guess some people might not be crazy about doing that in a neighborhood they are going to eventually live in.
One other thing you might consider, if you haven’t yet, is buying the house you like and adding the casita(s). It might open the possibities a little. Unfortunately, second houses on one legal A.P.N. don’t seem to add much value. Word to the wise, don’t think about gaining any equity above and beyond your costs this way. I think the second house makes a place more saleable though. Maybe the appraiser “Bugs” has something to say on this matter, if you want to ask.
