Some people place a low price on a home with the expectation of getting an "auction type" bidding process started. I've seen a number of properties listed for $1.00 on MLS. They all sold for much more money . . .to people that knew the areas.
Please get to know the neighborhood that interests you. A good Realtor can help you. Neighbors often know what is going on with properties near them. Stop and ask them. Check all the recent sales for the neighborhood. View as many homes as you can when they are available on the market in the immediate area. You will quickly get a good feel for what the home should actually sell for. If it needs work . . .get estimates on repairs from someone who works on homes on a regular basis. Basically, do your homework before making an offer on ANY home. Feel free to contact me if you have any more questions. i thoroughly enjoy helping people with real estate questions. Have a great week! - Tue Dec 8 2009, 20:42