TRE - it's not on the market... and there's ways to look up if the owner refinanced or not... it's public information if you know where to find it.
Vivian - I didn't figure it out through zillow, I just know where to look. The 400 sq ft that are below grade is an interesting one, but it does add value to the property as usable space (how usable is "semi-finished")?. The area has some 900 sq ft newly renovated solds around the same price... It sounds like the price is in the ballpark, but it might be a little high depending on how much work it actually needs. Does "semi finished" mean it has 2 routes of egress and it's heated?
Prices peaked right before 2006, dipped last year, and have come back a little since, but I doubt the place is what it was worth in 2006. That being said, TRE is right, the seller could have payed below market in 2006. I suspect that the seller is probably being a little hopeful, but the fact of the matter is, if the seller won't accept a price below $365k... you certaintly can't hold a gun to their head and make them sell at your price. (I mean... you COULD... but that would be illegal, and an invalid contract because it was made under duress)