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?