Realtors who are members of the Prescott Area Association of Realtors have access to history of properties that are listed on the MLS. I would recommend that you contact an agent to help you discover this answer. Furthermore, a good buyer's agent can help you pinpoint homes that best match your wants, needs and budget for purchasing a home. It is not a bad idea to have a professional on your side to help you navigate the current uncertain market.
That is a large price difference. It does sounds as thought the lender may have taken over this one. Lenders may sometimes start off high to just see if their is interest. Then, after a few weeks if their are no offers, start dropping the price in incriments. If you are looking for more detail, contact a buyer's agent. I am a buyer's agent, you can call me directly if you wish.
I cannot give you an accurate or professional opinion without the address and doing some ressearch into the property for you? Please e-mail Linda Wood at info@PrescottAreaLiving.com and I will give you the detials you want.
Linda A. Wood , The Ray Team http://WWW.PrescottAreaLiving.com
As for finding out more details about the property, I would highly recommend to locate a local Prescott agent who specializes in working with home buyers. S/he might be able to shed more light on the history and situation with the property you're interested in.
Without having more information, I would 'guess' the house was listed at $420,000 by the owners as a short sale? If this is the case and now the bank owns the house, the bank is going to list it for it's true market value. If it was listed at $420,000 by the owner as a short sale, they may have listed it low just to get some offers before it went back to the bank as a foreclosure.