Need some advice on a lead

[Giacinto L.]

I currently have a lead on a property that a woman is desperately looking to sell. She is selling a 2 bed, 1 bath, 814 sqft, and the whole lot is about 0.19 acres. The seller is trying to sell 3 small lots rather than the 0.19 acres as a whole. The home is in brutal condition, and wouldn't pass inspection to be listed on the market. The property is basically a shack. I'm thinking about just analyzing the lot as a whole because the repairs will cost over $40,000 easily.She is asking for what the county assessor valued it at $98,600. Comps around that area for renovated homes go around 105,000. How should I approach this lead with a reasonable offer?

Thank you ahead of time, I really appreciate it!