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Foreclosures and sometimes short sales may be priced aggressively enough to warrant a full price offer, In most cases the seller expects to negotiate, and prices their home expecting some negotiation. The amount of negotiation depends on the pricing history of the community and the condition on the property. An experienced buyers agent will save you a lot of money.
If you're dealing with the listing agent, do yourself a favor, and go get a Buy Side Broker. The listing agent is working for the Sellers (or should be) NEGOTIATE- It's a Buyer's market. In order to negotiate effectively you need an agent who can sit down with you and show you what similar houses in the area have sold for in the past 90-180 days so that you can compare actual recent sales to the asking price of the property you are considering.
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For Sale: $169,500
For Sale: $689,900
For Sale: $92,495