Of course you can always offer whatever you like. You may want to go through the home and take notes of everything that needs to be repaired, to be of the same quality of comparible homes in the neighborhood. Get a list of the comparible homes that have Sold in the last 90 days from your Realtor and then decide what a good price for the home would be. You may need to do some shopping to find out how much things cost to have repaired. Even though it says the house is being Sold As-Is you still have the opportunity to do a Home Inspection. If the Inspector finds something wrong with the home you can either back out of the deal or ask for it to be repaired. Usually if it's health or safety related, they will fix it. My son just bought a bank owned As-Is home. Upon Inspection, they found breaks in pipes, a major water heater problem and dead animals in the crawl space. The bank installed a new water heater, had a plumber fix the pipes and the animals removed and the area sanitized. These were all items that would prevent most Buyer's from Buying the home, the bank agreed and wanted the house Sold. He paid about 90% of what the bank was asking, however they were asking a lot less then comparable homes in the neighborhood. The same size home in this neighborhood have Sold recently for $85,000 to $120,000 more then my son paid for his home. We feel he got a very good deal without majorly low balling the listed price.