research, research, research.

You should know your local market better than anyone here.  This is a business.  If the number does not make sense (no profit), run.  Run as fast as you can. Do not care about other's word.  Do your own research!  It is your money.  Do not loss it.

In one of my old posts in 2009, I offered a full listing price on a house.  List agent ask for highest bit.  I did my own research, and believe my offer is too high with that market condition.  So I drop my offer by $2000.  The list agent was begging me to stay at original offer.  I refused.  At the end, I saved $1500.