reo offer on property already under value

[John Lucero]

I recently found a reo thats been listed since nov. of 09 and has been dropped in price twice. Once from 129 to 120 and another last month from 120 to 99. My city cad values it at 154 and the home is located in nice area where other homes average anywhere from 160 to 200. I've checked out the property and contacted the selling agent and nothing seems to be wrong with it besides the fact that its located on a pretty busy street which im assuming is why it hasn't been sold yet. My question is what would be a reasonable offer to make seeing is how its already been dropped twice. I was thinking of low balling around 85. This would be my first investment property and any suggestions/comments would be appericated thanks.