Owes more than asking

[Scott Long]

I found a beautiful home in Florrisant, MO. Other homes in the area have sold for $250,000-$350,000. The owner is asking 265,000 and very flexible price. He is looking to retire and just wants out of the home. However he owes more than the asking price. How would I make this deal work? 

The house is in great shape and the only thing that needs to be updated is the water heater.