As a Buyer's Agent, the job at hand is to represent the Buyer's best interest in a transaction. That includes giving you advice on what to offer. In the instance of a foreclosed property, it's not uncommon for offers to come in at or even over the asking price. Since all real estate is local, ask you agent what they are basing their recommendation on. They can likely show you sales data from the MLS to support their recommendation! Best of luck!