Hi Naomi--I don't think it's too low to make the offer of $250,000 (that's about $100/sq. ft). That is $10/sf below the lowest comp that isn't a foreclosure. This home purports to be totally updated from top to bottom so my feeling is that it won't sell for the bottom of the comps, but you never know until you try. It has been on the market since Septemer 2008, the price has only been reduced by $6,000 in all that time, so I'd say the market is rejecting this list price.
If you would like to go see it, or if you would like my help in negotiating an offer on this property, please don't hesitate to call me. I'd love to be of assistance. You can see the comps by clicking on http://mfr.mlxchange.com/Pub/EmailView.asp?r=1368719922&
I look forward to hearing from you.
Coldwell Banker Residential Real Estate