I would say go up $5k and see what happens. You can always show the bank that you tried to get them the best price and that will help you with your relations with the bank and to get a speedy response from them.

Good Luck!

Depending on what is going on in your local market. I would suggest you take the offer if they will drop any home inspection contingencies. Work through the terms with the bank.

i just did one.  Bank wanted no part of negotiations.  Start negotiating offer.  Tell bank you have one coming in and when agreed upon, send to bank for approval..  Of course make it contingent on ability to get short sale.  I heard as long as offer will give them 90 percent of owed amount, they can usually get approval.

 If the offer is agreeable to the seller take it as it stand as the bank wants to see an accepted offer then they will consider. Send comps with the offer and ask the bank to have a BPO done if they havn't already done so . Even if the bank 1099s the seller they will not owe the Feds as they gave relief on that one and in Ca. the state just did the same.

Hi Debbie. The buyer should be prepared to "re-negotiate" the contract. However, since you're only 10k from the asking price on a listing that has been on the market for a couple of months, I wouldn't worry too much. Best of luck.

Submit your offer and support it with a BPO.  All you can do is give it your best professional effort.

Good luck.

I agree with everyone.  It sounds like there are several ways to do this so I guess you need to do one.  I think I would negotiate first just like you would any property.  The banks don't want to throw away the properties.

Usually people give an offer with the intention that there will be a counter offer. I would probably go up another $5K like Mo said and use the BPO scenario Roy mentioned.