I have to agree with Maureen and Mike's view on this. You really don't provide enough information to determine if your offer was too low. Your agent (I assume you are working with a Buyer's Agent) would be able to provide you with more accurate information as Mike suggested.
Just to ask, Did you come up with the 120K price out of thin air, or did you use factual information?
The sellers response will be the best indication of the quality of your offer. But from our perspective, your offer is a place to begin....
An important point here is that the buyer drives the real estate market......the amount a person is willing to pay for anything creates its level of worth. One thing is for certain in this market, that is the sellers "asking prices" are for the most part......too high.
Don't worry about your offer price....you began where YOU needed to start. The next move is the sellers!
If you dont receive a response within a week recommend keep looking or increars your bid