Since it is an older home they might have found problems, the Realtor should disclose any if so. There might be total equity in the house and the owner wants it to sell and so they just keep lowering it to find a buyer. Was it grossly over priced (hard for me to imagine at $40k but maybe there it is)? Termites? I would ask if there was an offer and an inspection done? Go in with eyes wide open.