So, I've been meaning to expand my horizon and learn a little bit of guitar in addition to bass. I'm not looking to spend a lot of money, as I'm pretty much just learning guitar as a backseat to bass.

Anyways, my local pawn shop has a squier telecaster hanging around, and they're asking $199.99 for it, which is the price of it new. The Telecaster has apparent blemishes and scratches on the body, is in need of new strings, and may have the beginnings of a warped neck.

I'm was thinking of offering the store around $50 for the guitar (assuming that I can play it and make sure it's in working condition), does this sound like a fair asking price for it?
199 is just for the standard, are you sure it isn't an affinity (cheaper, crappier)? I would say you probably wouldn't get it for 50, because someone will probably buy it for their kid at 150 or something. If you just want to mess around get one of those cheap wal-mart guitars, they sound about the same as a squier.
Well I think I'll be able to get it for a well reduced price, it's been sitting there for almost six months now. I've gone to the same pawn shop hoping to sell some of my basses and one of my friend's guitars, and the owner mentioned that nobody is buying their guitars, they can't afford to buy anymore (they have a wall filled with no-name electric and acoustic guitars).

Plus I live in an area with a fairly high income rate, if a parent wants to buy something for their kid, they'd probably be able to afford it new. This is why I think I can get it for that price. I can't really spend more than $100 on anything, just because I don't have that much money to invest in something I won't be able to invest much time in.