Deciding on price / oil burning furnace

[Richard McCaig II]

Newer guy here. This is my second thread, and I have a lead on a house across the street from me. It appears to be in decent shape from the outside (havent been inside yet) and the owner is moving out of state late December. Ive talked to her and she knows that I'm interested in buying. One of my main concerns is that they have an oil burning furnace with (im guessing) asbestos pipes. She also stated that they don't have gas lines at the house at all. I know that it can be done as we're very much in the city, so i know she has a tap at the street but it would need to be brought to the house. 

I'm going to guesstimate that replacing the furnace and getting a new line brought in is going to run at least 10k. Im sure I could rip the old one out myself and save a good chunk of that which I am contemplating... but how do you go about making an offer on the home? From what i can see from my house its a little bit dated, so would you subtract any and all repairs from the market value and offer that? Low ball the heck out of her and try to get it as low as possible in order to make an extra buck? I dont know her that well so I'm not opposed to low ball but I dont want to piss her off and have her not want to sell either..

any help would be greatly appreciated! Thanks everyone!