I've enjoyed reading some of the threads on the site and had a few questions of my own. I'm currently shopping for real estate in northern Florida and judging by what I've heard (and seen from the listings), the market is getting killed from a seller's standpoint. There are a number of short sale and foreclosed properties I have been eyeing.

My question is on these properties, is there a good rule of thumb for low-ball offers? At the expense of pissing off the seller, which I don't really care about, I see the opportunity to save a bunch of money on properties that have been on the market for 1-2 years and have seen drops in price by 10K at least monthly. My realtor has advised me that banks typically won't even consider an offer 5-10% below list b/c the foreclosed property is already listed at far below market value...the way I see it I could just wait another month and watch the price fall further.

Also little other questions, can you negotiate closing costs with the banks or are they typically unwilling to aid in this aspect? Lastly, I'm torn between trying to figure out if I'm shopping too soon or is now a good time. I'm basically tied to a lease for another 4 months, so I wouldn't/couldn't close on the property until the month my lease is up...mid July. I've read a few stories on short sales taking 2 and 3 months to go through, and even longer in some circumstances. I know you can negotiate a closing date, but I wonder if I'd be better off just sitting for another 2-3 months and watch the prices fall even further. You see my delimma? I see enough properties I like that "loosing" a few to other buyers really doesn't concern me. Any advice is appreciated! Thanks.