I have had the distinct pleasure to represent many cash purchasers in my real estate career which should most of you would agree is a good thing. Interesting enough, most of my cash purchasers are usually of the belief that the seller (no matter what the situation) should accept ridiculously low offers because, well, it's cash...right? The hard truth is that even in this buyer friendly market, cash may not garner the type of deal that one may expect. The way to approach any deal (especially cash) is to thoroughly survey the seller's position (what type of seller-bank or regular home owner & current reason for selling). As you can imagine, most folks regular home owners would consider most offers in this market, but banks/asset managers are less compelled to jump the gun especially in the beginning (of managing a property).
The best way to handle these type of situations is to make sure your trusted real estate advisor (agent/king of all that is negotiation ;-) is able to do their due diligence and provide some much needed background before any offer is made. Trust me, this will save lots of time and money (literally).