What's the least for which you could sell a house? If I have to get out, how far underwater is my mortgage? What should I offer? How should I negotiate?
Forget everything else. Credit is no longer free and easy. The only buyer competition you should worry about is a cash buyer, and this is how, in cold blood, they calculate the cash value of your dream home. Motivated sellers might need to take less if there aren't enough buyers. Buyers might have to pay more if other investors expect to get more rent.
Rule of thumb: $700 rent = $100,000 price. If in your market you can get rent for the as-is home on offer totaling $1400/mo. then it's worth $200,000. That's more or less the economic equilibrium point between the rents supported by jobs in the local economy and the cost of providing housing.
Change the number in either one of these blanks to see how comparable rentals translate to price.