The answer to that is "it depends". I assume your Realtor is providing you with some guidance and you are aware of comparable neighborhood property prices. As long as you have a clear idea of what you may need to fix on the property and it is truly the house you want- there is nothing wrong with going in with a Strong offer.
Make sure you have your written pre-approval to submit with the offer also.
I always advise my Buyers to put in their highest and best offer- especially when you may be competing with other Buyers (which is happening in many cases here in the Milwaukee area right now).
Interest rates are incredibly low, so hopefully you will have a win-win on your purchase.
All the Best to You!!
On the surface there is nothing wrong with doing this to improve your position as a potential buyer. It is a common tactic, especially when there is multiple buyer interest in the home.
Keep in mind.....if this is a highly desirable home, other buyers may be considering the same strategy.
If you are working with a buyer's agent and they can produce, to the best of their ability, a value for that property based on comparables, that may help you set the mark for your offer. In the end you need to feel comfortable that you've done the best you could with your price should you lose out on the property. Keep in mind that an attractive offer to the bank is not only about the price. The terms are equally important. In most cases with a foreclosure, an offer will not be accepted that has a sale of home contingency. The buyer should always have a pre-approval letter ready to submit with the offer. This shows the strength and readiness of the buyer and the willingness of the lender to lend on the property. Closing as soon a possible is always a bonus to the seller (bank) as well. Keep the offer free from any contingencies that are not really imperative to you. You basically want the cleanest offer with the most attractive terms for the seller which are also acceptable to you.
Best wishes to you in your new home!