The house has been on the market for 78 days by VA, however, before it got foreclosed, the owners tried to sell it for 179K but it was on the market for 6 months. It is a very nice neighborhood of Rowlett and there isn't a high turnover there. It has a very nice community pool too. Also did you compare it to the other one that has 4 bedrooms around the corner that is also a VA foreclosure?
VA has it listed for more than what the note is for but they are looking at recouping the closing fees and especially the delinquent taxes. The balance on the loan is about 159K.
As Carlos said, your agent should have prepared a market analysis and you can see how much the other homes sold for, then you decide what this house is worth to you and make an offer.
Also, the bidding period slp was up January 23, so the bank will look at your offer as it comes in.