great points chef. I'd also add this:
The selling realtor may have it priced low so that he can generate a bidding no war, in which case they usually end up making more than of the house was listed for the 15-25k more like it should have been.
Once you get 4-5 people bidding on the same property and want it, they will get lost in the fact they can find a similar house in the same neighborhood for less or the same price.
Also, look at it, and hire a good home inspector. They will be able to tell you if there's something truly wrong with the house.