Many people in NEO are looking at REOs and short sales, as they think that's the only way to get a good buy. During this recession, there are goods buys with homes that the owners need to sell for which you can get a good buy. For seller owned homes, buyers can always offer less than the list price. Many sellers are very motivated to sell at a price much less than the listing price, particularly those that are no longer occupied by the sellers.
I hope this helps.
Keller Williams Realty