The price is determined by what a buyer offers and what a seller is willing to take. Then it is in the hands of appraisers and sometimes if you offer more than what it is worth , it may not appraise. A good agent from your area can guide you.
On second thought, it is condo. make it $2,500.
Offer less than the real value by a bit. But figure out what it is worth before making an offer. It could be priced right now. It could be greatly over or under priced.
It seems like a number of people have asked questions like this recently. Unfortunately there is no right answer. If the home is underpriced significantly, then you probably want to get in a 100 percent offer before someone else does. If it is overpriced by a large factor, then you want to offer what your instincts tell you the home is worth. Unfortunately, you probably won't get a badly overpriced home, because the current owners apparently think a lot of their home and they will not listen to reason, at least until the home sits on the market for a while.
But most homes are priced near to their true value, which means you and your agent should do some research and come up with an offer than feels comfortable to you. I think the negotiating mistake many of us make is trying to second guess the other side. In the end though, you really should look inside yourself to find a figure that you are comfortable with. Then don't worry too much about what the current owners think. You want a deal that works for you. They will look out for themselves.
Prudential Real Estate of the Rockies
I hope you are working with a buyer agent..if not..please consider working with one who knows your area. Your buyer agent will help you to make decisions like this, based upon the comps for the area. I can tell you that there are 1500sf condo's in Torrance that have sold recently for 410,000. range,and in very nice developments.