The home may be priced just about 5% too high. Considering the low inventory and all the features and benefits of the home they just might get the price they are asking. They may have a problem when it comes to the appraisal though.
How much is this house really worth? The home is worth what the seller is willing to sell it for and how much the buyer is willing to pay for it pending appraisal if financing is being obtained.
If you like the home you can always offer what you think a home is worth and begin your negotiations from there. Or go ahead offer their price ask for a % of closing costs and wait for appraisal and re-negotiate at that time if the problem arises.
Keep in mind your lender will not loan you more money than the house is worth.
If I can be of any assistance please do not hesitate to contact me. I am located on 7th right off of Mountain.