It is a popular misconception that banks are often accepting half of what they are asking.
This is not the case. The reality is that banks often list homes at half of their former value. Banks only accept offers that discounted on select properties that have been on the market for quite some time.
When foreclosures are listed the properties have been appraised and thoroughly inspected and the banks are quite aware of all repairs needed.
The prices reflect these factors. Sometimes for one reason or another a bank will price a property well below market value to move it quickly. Usually these properties receive multiple offers within a few days of the listing date.