Have your agent run the comparative sales for the last 30-90 days only. Now, run them for the last six months. Is the average sale higher or lower? Offer accordingly. Parts of McKinney have been improving and other parts are still saturated. Keep in mind that a bank is like any other seller. They are going to run a BPO (broker price opinion) when they take a contract on that property, and they will likely counter the offer if you aren't up to fair market value. Even if there are half a dozen foreclosures in the area, our region was not hit with foreclosures in the same volume that many regions of our country have been. This isn't a free-for-all. We've got a mix of regular resale, new homes, and distressed sales in every city and town in our region. The comps don't lie. We've got some of the best Realtors in Texas based in Collin County, and the $250k-650k homes are the bread-and-butter of our business. Partner with a good one, visit the property together, create a list of 'issues' with the house (chances are the bank has never seen it), and take current comps into account when drafting the offer. That list of issues needs to be turned into a repair budget. And, you need to focus on that very closely. Is the foreclosure still a 'deal' after the repairs are done? If not, go find a different house. Are you up for those repairs? If not, go find another house. Don't be dead-set on a foreclosure - view the available homes in that area and judge each one on it's own merits.