When making an offer, your agent should know how to take into account how long the home has been on the market. Today things can be complicated by the amount of REOs and short sales affecting prices. There are some areas appreciating, but appreciation and depreciation varies greatly from area to area. With lead based paint rules changing, the area you are looking into has a few more things you need to be aware of. The market here has the benefit of military which provides a major boost to our economy in keeping it more stable than other cities. Longer time on market can be reason for a lower offer, but in Colorado Springs the average time on market can be much longer just across the street, so the price could be in the right area already. I realize this is a late post but I know people look back for answers.