We've seen lots of changes over the past few months.  The banks have learned how to sell their REO inventory.  They are pricing low, getting in LOTS of offers and then working on moving the price up through writing counter offers.  It's effect and works very well for them.  So, here's the bottom line.  When writing an offer for an Short Sale or REO property, if it's a good buy, be realistic and write your offer as HIGH as you are comfortable offering for the property.  Don't play games and write low thinking you are going to steal it from the bank.  They are not dummies!  And, on REO's expect a quick answer, lots of demands from the bank and, if you want the property, be ready to close very quickly.  Have your credit approved, cash in bank for the down payment and closing costs.  Have your vendors for termite, inspections and insurance ready to see the property very quickly.  Banks are demanding that the 17 day continency for inspections be reduced to 5 days.  You have to act fast to get the good deals.