If you really want the home, then it would be important to offer a price that makes sense for current sales/non sales figures all of which can be deduced by your real estate agent. AND I hope you are working with one.
As the buyer, there is no cost to you to work with an agent. And because of questions like these, and all the other contractual issues, it is extremely important that you have representation.
Back to your question: I wrote 4 contracts this month and they all failed for the buyer because the buyers wouldn't listen to me and insisted on offering too little. All of us realtors have taken courses these days to help us determine how to get a home sold, and the most imporant part of the course was PRICING IT TO SELL. We have now priced the home on the money.
But buyers still think offering tens of thousands of $$ less still works. It doesn't. Our sellers are at rock bottom now and the next step is just handing the bank the keys. So, Richard, have YOUR agent do research to see 1) what homes in the area HAVE sold for in the last 3 months 2) what homes didn't sell for and those are the homes that are still for sale after a long period of time 3) what homes have been taken OFF the market in the area (because they were priced too high and didn't sell.
Then you will have a very good indication of what a good price is. AND you still might have some wiggle room......