Kathy, I often tell my clients, that people can ask whatever they want for their property, however as they buyer, you determined what's it worth base on recent sales, condition, location and estimated cost for repairs.
Speak to a local real estate agent, who know the market. It is important that all aspects are considered when making an offer and an experienced local real estate agent will help you negotiate the best offer for this home.
Please let me know if I can help. All the Best!