Your offer should have nothing to do with the list price. It should be based on the objective value of the home, your motivation in owning it and what you might learn about the seller's motivation. Another factor in your example could be what they owe. Even if the home is only worth $130k, if they owe $170k, odds aren't good you'll be moving in anytime soon.
You really need an experienced agent to review this home, search for the best comparables and help you with strategies for your offer. Homes don't have a blue book value like a car. The list price is just a strategy the seller is using, not a value. In many markets like mine, homes commonly go for over list price due to the shortage of inventory.