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Listed at $169,900? What would a good offer be?

We are looking at buying our first home n Grand Haven, MI.  The house is listed at $169,900.  The SEV is $69,800.  Is an offer of $120,000 to low?  What would be the benifits and disadvantages of starting at this price.  Thanks for your help!
  • August 24 2009 - Grand Haven
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