Respecting seller when making low ball offer

[Steve Sapowsky]

I have a neighbor asking roughly 200k for a dumpy 1000sqft home with roughly 5.5 acres of land. House needs the better part of 100k and will sell for around 200k. My parents are farmers and the 5acres abuts their land so they are willing to put in 40k for the land. I will have to rob about .8 acres to make it a decent sized building lot. Based on my analysis I am coming up with a number that is around 95k. Keep in mind the entire property needs a lot of help. How do I offer my poor neighbor less than half of what he wants while maintaining respect for him. Obviously I am a little bit new to this or I wouldn't be asking this question. How are you experienced investors making these offers?

[Shawn Torsitano]

Sit down with him and "ask for his help". Get your comps, all your cost estimates, and ask him to meet with you. Tell him something like, "I'd really like to buy your property, but these are the numbers I keep coming up with. Is there something I'm missing? I want to get close to your price, but I'm not sure what is adding that value". Make it sound like you think he is right, and that there just has to be something you're missing.

Trying to get people to justify their price without being combative is a great way to make them rethink their numbers. If he sounds open to a low offer, submit it. If he is stuck at his price for whatever reason, you know not to waste any more of your time.