House Price Seems High in Dayton Minnesota

[John Woodington]

The wife and I are looking at this property tonight, not as a rental, but as a potential new primary residence for us and our children:

https://www.zillow.com/homedetails/12161-E-French-...

It's not perfect for our family style, but it does have a nice amount of space.  My issue with it is the price, which is $595K.  This house is under 2000 sq. ft. and was built in the 1920s.  It is priced at $324/sq ft, which is almost double what many of the newer homes in the area are going for.  It is listed as a lakefront property, but the lake it is on is only 4 feet deep, and doesn't hold any fish, nor could you really boat on it (that doesn't really count as a lake in MN if you ask me).

My feeling is that this place is really worth about $325K (tax assessed value for this year is $304K).

Am I a jerk for wanting to offer $270K less than their asking price (pending our walkthrough tonight goes well and we like the property)?  Any tips on negotiating with a seller who has their home listed far too high?  I'm tempted to offer $325K, and when they turn it down, just tell them my offer stands and call me if you can't sell it.

Any insight would be helpful.