I have assisted many buyers and sellers in the purchase/sale of short sales and specialize in the Cranston/Warwick area. If you are not currently working with a buyer agent, give me a call or shoot me an email and I will be happy to assist in negotiations by providing a market analysis of the area, sq. footage, condition etc. You should have someone representing you in any transaction, especially a short sale situation. If you have never dealt with this type of transaction, there is information that you should know before proceeding. You can reach me @401-480-1973 or email Lori.Rossi@Nemoves.com.
Your agent is the best person to make a recommendation on what the range of market value might be.
Remember that the lender views this as a business transaction. If and your Realtor can make a case (that means using facts, such as recently sold homes of comparable size and condition), you might be able to get them to take a lower offer. In a short sale that means that the lender may need to convince an investor that it is in their best interest to accept an offer lower than the list price.
From my experience your offer should reflect the area sales and overall condition of the property. The bank is looking for Fair market value for the property. If you have repair estimates I'm sure the negogiator will glady take them to help argue the point but keep in mind the most important numbers are the areas recently solds. Call me or email me I'll gladly do the comparables for you if you don't have a buyers agent.