If you are willing to spend the time and effort to do it, then go ahead and make the offer, becauses if you don't make the offer, then it's an automatic loss.
However, I do agree with Michael, some of the agents are pricing houses Way, Way, Way below a reasonable price, and I suspect, trying to either get multiple offer and drive up the prices (which I have seen in Novato, Marin County) or just to get an offer in and go through the process of getting approved by the bank and delay the foreclosure.
Ask the listing agent if the bank has given them a net proceed they need to receive ini order to proceed when they were negotiating with the last five offers. That will give you a better indication on how much the bank will actually accept. However, if you are going for short sale, especially with the one that's priced low, be mentally prepared that there might not be much negotiation room on repairs and credits after you are in escrow (after the lender accepted your offer).