Scott, you have probably moved into your new home already but I felt compelled to respond because others might look at this question and I get asked the same question frequently by Buyers these days. Others have already responded that "it depends" and I would agree with that answer. What does it depend upon?
1) The Seller's motivation - as a Buyer you probably will not know the true extent of the Seller's motivation without submitting an offer but the listing history and the condition of the home may guide you - a truly motivated Seller will be adjusting the price regularly, keeping the home in immaculate condition, and not having extensive showing restrictions.
2) Recent price change - a recent (within the past 2 weeks) price change will probably reduce the flexibility of the Seller.
3) Volume of showings in the past week or so - again, this may be difficult to determine but if the Selelr is seeing lots of activity, then they arer probably less likely to reduce the selling price - activity is a signal that the Buyers and Buyers Agents think the home is reasonably priced.
4) Financial flexibility/Net amount of offer to Seller - as I go from listing appointment to listing appointment, I see how many homes are mortgaged to the maximum - so although a Seller may love to sell, unless they have a large savings account to tap into, it is unlikely that a heavily mortgaged Seller is going to move much off of a list price if it means having to bring a large amount to the closing table (even if they are highly motivated to sell) simply because they have no way to make the closing occur. If the home is in poor condition, then you may also correctly surmise that the Seller probably does not have the financial means to update or repair it so they probably do not have the means to accept a much lower offer.
5) The competition - if a home is fairly priced relative to the competition, then there is no reason for a Seller to discount the list price by much - just because the home has been on the market for a period of time is not the reason to discount heavily - if you and your agent are unable to find any homes in the same neighborhood in similar condition for less, then it is probably attractively priced and if you want the home, then offer close to list price. In this analysis, the lot and the condition needs to be comparable. As an example, I have a listing that currently is more than $100,000 more expensive than another home in the same neighborhood with the exact same floor plan - I am confident that my listing will sell faster than the other home because the condition, upgrades, location, views, etc provide better value to a buyer than the other home even though it is more expensive.
So, time by itself is not a reason to provide a much lower offer - my experieince is that most sellers in today's market will continue to reduce the price by smaller increments (1-2%) over time before accepting an offer that is 10% or larger off of list price.
Scott - I hope you got the home you were looking for and thanks for asking the question.