â€œForeclosureâ€ does not mean â€œdiscountâ€. â€œMarket valueâ€ does not mean â€œoverpricedâ€.
If you are interested in the property, get your Realtor to advise you on it value. While banks are motivated to get rid of their foreclosure inventory, they want to get the most they can. After all, they are taking huge losses on foreclosures. Having said that, maybe an offer for less, justified by suitable comps and proper research, will ultimately get you the property.
If the house is in good condition then the bank should list it at current market value. Just because it's bank owned doesn't mean they have to sell it for less.