Unlisted House, Way Overpriced, How Do I Get It?

[Joey H.]

I am currently pursing a house that was listed for 8 months and did not sell. Just for some background, I live in a very active market and its not uncommon for houses to sell before they are listed or the day of, so usually if a house sits for any amount of time there is something out of place. In this case it was priced well over what it was worth; given that it didn't get any offers it seems like the market agreed.  The current owners have been trying to lease the house and again have it overpriced and have been unsuccessful in leasing it. Its a great house that has great potential but needs some work, probably to the tune of 20k-50k.

I really like the house, and I would be buying this to house hack for a year or two and then convert to rentals. I always strive to work out win-win prices but on this deal we are about 75k-100k apart from each other. I can pay fair market value in its current condition but it doesn't appear that the sellers have a realistic idea of what that value is. 

Does anybody have any advice for purchasing off market deals, particularly when it comes to pricing?