Are home buyer's expectations real?  If you are looking at a property that is priced to sell, don't expect to get an additional large price reduction.  A survey by Campbell Communications indicates the following statistics.

Average Sales Price to List Price Survey - September 2009

Move-In Ready Bank Owned (REO) Properties - 99% of List Price

Damaged Bank Owned (REO) Properties - 95% of List Price

Regular Sales (not Bank Owned or Short Sales - 94% of List Price

Short Sales (Pre-Foreclosure) - 93% of List Price

You can see from these statistics that the list of sales price range is in the 93% to 99% range.  Real Estate is a local market and these statistics will vary from region to region however buyers that still expect to see major reductions are probably in for disappointment.

Multiple offers are once again becoming more prevalent.  If you are looking for property that is priced below the current market you can expect to see multiple offers for the property.  Following are the September, 2009 statistics for multiple offers per category:

Average Number of Offers:

Move-In Ready Bank Owned (REO) Properties - 4 Offers

Damaged Bank Owned (REO) Properties - 3.7 Offers

Regular Sales (Not Bank Owned or Short Sales) - 2.8 Offers

Short Sales (Pre-Foreclosure) - 1.8 Offers

For further information regarding the statistics in your local market you should contract a local real estate professional.