Bidding Strategy?

It all depends on how long the house has been listed and how much similar homes are selling for. I would suggest making an offer and see where it goes. No harm in trying.

yes, but make an offer where? Both houses on the market for 2 years -- one hasn't had a price decline in 1 year and one decreases by 50,000 1 year ago.

you obviously have to do the comps, especially comps in the last yr. You can bid 20% less and let them counteroffer. Also, if your broker doesn't get in the way bid on both houses and see where you get the better deal.

It really depends on where the comps are priced.