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If you offer less than asking, how it's perceived is going to be in the eyes of the seller - and there's nothing you can do to control their perception. Offer what you're comfortable with, and move forward from there. You could try and support/justify your offer, but that can be interpreted as either "and here's some objective support" or "rubbing salt in the wound" - all depends on perception of the seller.If the seller doesn't respond to your 25%-below-asking offer, that doesn't mean you can't make a second offer to try to re-start negotiations. Then again, maybe there's a reason the house has been listed for 12+ months.
I happen to think the more you support your offer with recent relevant market data, as well as realistic costs for necessary future or near future repairs, the more likely your offer will make sense to a reluctant seller.I know you said it was on the market for over a year but how long has it been listed at 200k? How many price reductions have there been in a year? Any? This will indicate how flexible the seller is. When it comes down to it, its your money, your investment and your decision as to how much its worth to you.
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For Sale: $289,900
For Sale: $210,000
For Sale: $409,900