First Time Home buyer - making an offer

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Hi all - looking for some advice. We are looking at making an offer on a house listed at 199k in southern IL. It is vacant (possibly military family) and has been since the listing in September. It started on the market at 204k and dropped at the beginning of. November to the current price.

We are pre-approved for 225k but my comfort zone lies more around the 185k mark.

We do really like the house but could move onto another if it didn't work out. What would a good first offer be? My partner wants to lowball somewhere around the 169,9k mark while I am more conservative and don't want to be. totally insulting

Thoughts and input is welcome!

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