Jamminzee,

The pre-foreclosure (short-sale) is offered at $999,000, that is what the listing agent came up with when they did the comps.
The owner (a bank or title holder) is going to send an appraiser to see if the value of the property and the title holder is going to counter or honor the listed price.
Also, it all depends how many buyers are out there trying to buy a home as well. Multiple buyers will submit offers higher than the listed price.

Hope this help,

Jes Sierra, B.Sc.
Realtor®

What do you mean by Pre Foreclosure? Is it in default or has a notice of sale been posted? There are alot of facts you need to find out and information you need to gather to even see if this sale is a viable possibility.

Jamminzee,
It all depends on view, location, size, age and condition of the considerably home. Dana Point is one of the cities where home prices vary considerably with location. So you need to know the comparable sales from the same neighborhood and understand the current trend. In the price category you mention there is still downward pressure on price but if it is a great house with a spectacular view it may get bid up over the 99k price.
The most accurate answer to your question would be answered through doing a thorough analysis of the neighborhood and comparable home sales.

Jamminzee,
Did you want to know where your offer should be? That depends on location, sqft, #bedrooms, condition, you can email me or call for some answers.