Now, the real worth is only in what the public is willing to pay. Normally, if a house has stayed on the market for over 60 days, the bank will adjust the price. 4 of the Banks that we deal with will also offer huge savings with "block" purchases (buying more than one house at a time).
I get so tickled with individuals fretting over an asking price......JUST DO IT!! Then you will know. No one is going to call your mother a name! You never know....the asset manager may be in a good mood. If your price doesn't work, then decide if you want to raise it or just move on. You have nothing to lose and everything to gain. Most of all no regrets because you tried.
Some pretty good comments in the answers you have already received. The difference is revelant to the asking price as Kate suggests and determining the real value of the house regardless of the asking price are the both good suggestions. Dan recommends consulting your realtor if you have one and if you do not, then you should get one. They have the knowledge and the tools to arrive at the best value of the property.
One other item that should be considered is that if this is foreclosure, your are dealing with a very unemotional seller who will not act quickly. If this is a short sale the wait could be even longer. The wait time for banks to respond these days is being measured in terms of weeks not days or hours.
Again if you have a Realtor, utilize them, if not, get one
Weichert Realtors - BenchMark
I'd ignore the asking price.
I'd determine what the house is worth--which might be more than or less than the asking price. Then I'd pay no more than the house is worth. I'd probably offer less. Read Dan's answer.
I also wouldn't care whether there were other offers. And I wouldn't try to read the seller's mind to determine what the seller might consider reasonable. The primary question is: What is the house worth? It's really that simple.
If you are not working with your own Realtor, get one. We have the tools to do detailed research and come up with a good plan. If you are using the banks agent, they are contractually obligated to look out for the banks interest, not yours. You need your own representation, just like in court.