The owner paid $457,500 for the unit in 2006 which already tells how close they are to losing money on the property. They took a loan for $366,000 so this means they aren't close to a short sale situation (yet).
When looking at the comparable sold 3 bedroom units from the last 6 months it looks like the property (with the new price drop to $449,900) is pretty well priced. There is probably some room to shave another $10K off the purchase price but you might need a strong negotiator.
When trying to price a property it is also important to look at comparable units that are on the market, i.e. what the local competition is. Here is every other property for sale in Waltham: