Sorry Iheart...didn't see you question last week.
My house originally went on the market through Fannie Mae in October 2009 at $255,000. Looking through county documents available online, that was pretty much spot on what the last purchase price was in 2007. I found some documents in the house and the papers that were served to the last owners showing that is pretty much what they owed as well.
My final purchase price was at asking in March and was $50,000 less than their starting price. So, we offered asking at the price it was in March, which as far as we could tell, was more than a fair price. The house did appraise for a little more than what we offered. The houses around here are selling steadily, but not robustly if the asking price is right. I have continued to look at closed sales in the paper and seeing what the last asking price was and they are very close. It seems to me, the prices are bottoming out in my area.
I think you are on another site online (same user name as you on this site!) and I put a more detailed reply to that thread. But, long story short, our offer was at asking price when we put it in.
