Byun.kevin, the realtor let you search the MLS for your area. In many
areas, you can do this free because many realtors offer online access to
it in exchange for minimal information about you.

On the MLS you can see general descriptions of houses and their prices.
(Selling prices if that is public info in your state; else only asking
prices.) But, from the list you generate on MLS you can pick 3 or 4
most comparable and have a licensed appraiser do a full comp workup.
Then, separately, you should get an inspection done by a licensed house
inspector. The appraiser works from the assumption that everything is
in good working order, meets code, and does not require repair. The
inspector looks at those issues.

Offer only as much earnest money as you feel comfortable losing. Make
the offer conditional on your own approval of appraisal and inspection
results. One strategy is to use the appraisal to set the initial price
then subtract for the cost of repairs of problems found by inspection.
To get those costs you ask the relevant trades (roofer etc) to look at
the house and give you a written estimate of the work to be done.

A house for sale should look like nothing is wrong, but this one has a
number of red flags. It is in foreclosure after being owned 17 years;
that could mean just 1 year of tight money, or many years, hence a lot
of deferred maintenance. A roof in (to you) "fair" condition suggests
deferred maintenance has been going on a long time.

Una