REO list price question

[Deanna Kiser]

Hello, been reading for a couple days without finding an answer to my exact question, and because I'm running out of time, I'm asking though I'm sure further searching might help:

Is the REO listing price (on MLS) ever just a low starting point and the seller expects bids to go much higher?

For instance, an REO property is listed about $100K under comps. While it does need significant repair, there's quite a bit of difference between ARV and list. We are not investors, but will live here. This house would normally be out of our price range, so I am trying to be realistic since it there are multiple offers. Thank you for your time!