Get your own realtor.
The list price is merely a starting point and it truly depends on what pricing strategy the listing broker uses and what his REO asset manager has directed him to do,.
Your realtor, on the other hand, should be well-versed with REO sales, market conditions, and also get as much information as he can on this foreclosed property (when it foreclosed, for how much, what its current value would be in a distressed market).
Don't go by what the listing broker's list price: sometimes, the listing agent may price the property artificially low to generate the most interest, or artificially high expecting that buyers wil submit low-ball offers.
Your best bet is to get your own representation --- an agent who is looking out for your best interests. And if you don't get this property at the price you're willing to pay, your agent can surely find other possibilities.