How to approach overpriced MLS deal

[Matt B.]

I recently found a house in an area I’ve been looking... it’s a beach community where you have million dollar homes and $350k homes (some have waterfront views, others are bungalows). A small house just came on the market that sold 2 MONTHS ago for 120k less, they now put it back on the market after what looks like a coat of paint, no major repairs and are asking double the price per square foot (or more) over anything comparable. Clearly people are trying to take advantage of a hot market but what’s the best approach to take to let people know that the house is not worth anywhere near what they’re asking and basically should still be priced right where it last sold in April? Should I just put in the low offer and let it sit until they decide they’re not going to get more and just hope there’s not some other crazy buyers willing to go too high?