REO - Banks Not Reducing More Than 3-5 Percent In Price?

Hello all,

I just submitted an offer on an REO property owned by WAMU, and the listing agent informed me that none of his REO clients will come more than 3-5 percent off of listing price early in marketing (It had been listed for three days). My offer was %25 below market - %20 below list.

Has anyone else experienced this? Is this the norm?

Any feedback would be much appreciated.

I recently submitted an offer on a Countrywide REO, and they countered %14 below their listing price... but that property had been on the market for over a month.