I made an offer of $405K and he laughed at me

[Kurt Michaelson]

Well, I made an offer on this one and the owner initially wants $547K, and said he was willing to come down in price for a cash offer. I offered $405K and he laughed at me. He later said he'd take nothing less than $500K for it and I offered $450K and he hesitated to say yes and declined. He believes he can get $547K for this, but it hasn't sold for that in the last 3 years that he tried.

The interior looks good, it's the exterior that needs some work, to bring it up to market value. ARV would be $585K - $600K.

I used the BiggerPockets calculator for this one too, which was a big help for me in figuring out an MAO and how much to negotiate.

Google Photos of the house - https://photos.app.goo.gl/HBtdJEofanQiK5Ms7

[Ned Carey]

@Kurt Michaelson obviously you have a motivated seller. He is motivated to sell it for more than it is worth. That is not a very good strategy for him. The  best strategy for you is move on and occasionally follow up with him until it sells. 

Just because someone should be motivated does not mean they are motivated.