An asking price that is obviously lower than normal market value can certainly be an indication of poor condition. You should be able to determine this quickly by viewing the home. If not, the issue will most likely surface in a home inspection. Most contracts will give you the option to re-negotiate the purchase price or walk away from the contract if a major undisclosed issue is found during the inspection period.
It could also be a selling tactic. Pricing a home this way makes it stand out in the market. Most times this will cause multiple offers on a home quickly, and will usually end in a bidding war between buyers. Usually, if this occurs, you (and all other bidders) will be ask to put in you " highest and best offer" by a certain date for the seller to consider.
A good buyer agent can help you avoid the pitfalls. Let me know if you need one.
If you decide to view the home, and are not already working with an agent, I can put you in touch with an experienced agent- let me know if I can help you!
Coldwell Banker All American