The current owners paid $393,000 in Feb 2005. I would expect a sale at $350K the current list price would require bank approval for a short sale. However, based on a quick look at tax records, it looks like they paid cash. If so, they are in a position to negotiate much lower without getting bank approval (a good thing).
Taking a quick look at the neighborhood, $350K does look high. There's another single family home in the neighborhood on the market at $300K (bank owned), and one is under contract (without a garage) with a list price of $270K. So even if it's very nice, it might not even appraise for much more than $300K.
This area as a lot of foreclosures which bring prices down for everyone. I just completed an analysis of distress/bank sales in Montgomery County - take a look at the link below. Hopefully that helps.
Jon Tucker with RE/MAX 100. Yes, this could go down that far. If you like it, I can help you prepare an offer of $300k and will negotiate with the seller/agent to get it down to that point. Give me a call or email and I would love to help you with this. Jon Tucker, 443.538.4316, TuckerRealty@comcast.net