How Low Can Your Asking Prices Go?

I've seen asking prices around $5,000 here in Louisville, KY, and yes, that's for a house & the land on which it's built. They've been around forever, but I was truly shocked to see an asking price of $3,800 for a house the other day. Consider also that the cooperating commission offered is $1,250, so if I assume that the listing commission is the same, that means a full price offer will net the bank $1,300 minus some nominal closing costs. This to me is truly remarkable. I've alerted plenty of people about this, and the question is always the same: What good is $1,300 to a bank? I suspect the answer lies in the fact that these banks likely have hundreds, if not thousands of foreclosed properties for sale. In other words, every little bit helps. As of today, there are 31 single family homes listed for sale for less than $10,000 located in Jefferson County on the Great Louisville Multiple Listing Service.