What is the best strategy to re-negotiate a sales price?

[Clay Sexauer]

I currently have a buy and hold deal under contract. The contract the sales price is $135,000, my rehab cost is around $30,000, and my ARV is $235,000. After doing my due diligence, I realize that my budget for rehab could end up around $35,000. I would feel much more comfortable if my sales price was around $125,000. What are some of the best strategies to handle this with the homeowner? Keep in mind, this is a deal between myself and the homeowner, real estate agents are not being utilized.