Everyone wants a deal when buying a home. It has become a trend for home-buyers to specifically target foreclosures. Is that the best strategy? Well it is if you have the monies set aside for the necassary repairs and maintenance that comes with a foreclosure. I think it would be fair to say that if you are looking that concerned about overpaying then you are probably on a budget so a foreclosure will not be your best choice unless you are an investor ready to do what it takes to see the return on the investment.
In a foreclosure, buyers usually have to buy the home as is from the seller (typicallly the bank who owns the unpaid mortgage note). Banks are in the business of loaning out money to make money and not in the business fixing leaky roofs, installing new floors etc. Typically the bank will give the buyer the opportunity to get an inspection but it does not mean the inspection will reveal it all.
Just keep in mind that a foreclosure might be more than you bargained for.