Foreclosure offer advice

[Heather Taft]

I am going to make an offer on an attached home that is a foreclosure. Asking price is $204,500. The assessors website says the property went back to the back for around $181,000. The property needs all new flooring (2100 sq ft), paint, some work around a door where it looks like someone broke into the house from the garage, and there is some cracking in one of the walls. This cracking may just be settling as the house is fairly new (2009) and the former owners obviously didn't care about fixing issues in the house. This is all we can see that needs work. I want to offer $170,000, but was thinking about $150,000. It has just been sitting on the market for about a month and a half now. What are the risks that the bank will just say no and not negotiate if we go too low? What are ideas from other people on a good offer as I am new at this?