home list price is 254,900, offer price 200K is ok based on market time?

[karma l]

We found a home and the asking price is $ 254,900. It has been in LIST MARKET TIME 117 days and MARKET TIME 370 days.
It's a townhouse and the building square feet is 1056,
Land SqFt is 2630.
It was sold once in year 2000 for $158,000.

By looking at how long it has been in the market for sale and current mortgage crisis and down home values and ow much the previous buyer bought it for, Do you think I can start an offer price from $ 195K and at the maximum buy it for $ 220K?

Is that reasonable price based on the information I provided above?
You think I can get at that price.
I also intend to give that offer price and buy on inspection contingency. I mean I don't intend to fix any repairs worth thousand or more if inspector finds such problem.
The boiler and heater not new in that home.
I keep hearing and just yesterday, home values down significantly.

What's your advice and suggestion?

[anniewog]

I don't think that is a very good offer if the home is priced right. But it depends on your area. I live in WA. Market time does not suggest people are willing to take any offer. They might owe more on the home if they did a refi. I would suggest looking at the homes in the area that are similar in size and condition and make your offer based off that information and if you are looking for a deal look at short sales and foreclosures.