Foreclosed home Offer

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So, I got really interested in a foreclosed home that has been on the market for over a year (since Mar 2017 to be exact). It is a local bank owned property, but its been a year and the listing price only dropped $500. Listing price is going for $79k and requires A LOT of work. I don't think its more than $60k at best; so my realtor called the listing agent to get some info and show interest in it and we were planning to offer $50k. The listing agent then went on and said they are garnering buyer interests and one other offer is coming in tomorrow. Is this just the listing agent blowing smoke that I have heard about? 

My market is still a buyer's market that houses sit on avg of 80 days on the market and customary for seller to pay for closing; even banks. 

Literally a foreclosed nightmare: busted holes in the wall (even a section of a wall is missing), previous occupant took all the light fixtures and even a bathroom sink. Left all their trash in the house and looks like they systematically spread it all over the floor as I have to tip toe to look around. The wires looks like they have been stolen and cut, the furnace and A/C are damaged with some of their internals taken. The foundation and frame is amazing and this sits on top of a large lot (1.25 acre). I would like this a a primary residence for at least a couple of years since I like the location. We are drafting the offer with the $60k purchase price as I think that is the best and highest I will be wanting to get it for. 

What do ya'll think? Listing agent may just be trying to increase offer price?