Low over on an overpriced home

[Sam Smith]

I want to make an offer on a home that has been on the market for a year. The home in my opinion is overpriced. Homes in my area usually sell in weeks. originally listed at 299,000 and now a year later is 254,000. How low is too low to go on this home. I really love the house but am not willing to go higher than 200k. The home is completely outdated still in the 1980's. Other homes available/equivalent are priced around 185,000-225,000 and over 1 more bedroom and newer inside. Is this too low of an offer?  Should i wait for the price to drop more? Any advice would be helpful.