In this type of market when you are competing with under-appraised value - bank owned properties, you must be very careful to think through an offer that is presented to you by your Realtor.

Have your Realtor do a CMA of currently Sold Homes. This will be an eye opener to what is going on around your home.

You may be pleasantly surprised, but be prepared for those bank owned properties that have been selling around you. Appraisers do have to consider them along with short sales.

Bottom line.....if you were to counter and the buyer rejected the counter will you be okay with waiting another week, month, or even longer for the next offer to be presented? If so, stand your ground, if not then consider all of the expenses with keeping your home for a longer perior of time and risking your home value to drop even more than it may have already.

Just be careful with your offer.