Advice for potential off-market opportunity

[Annie Weeks]

Hi everyone,

I am a rookie investor and may have an opportunity for my first off market deal. My neighbor passed away over a year ago, and I let his family know that I would potentially be interested in buying the house whenever they decide to sell it. Well, I just got an email from them that they are getting ready to sell. They have met with a realtor to find out the value, but they are wondering if I am still interested. I am interested, depending on how much they want for it, of course. It does need quite a bit of cosmetic work, the garage is falling down, and it doesn't have AC (which is expected in our area), but at least some of the other cap ex items (roof, windows, plumbing) are in pretty good shape. Being right next door, it would be an easy project to manage and I know how much we could get for rent. It would even be a great STR. Like everywhere else, though, we are in a very hot market, so I assume it would go multiple offers even in its current condition.

My question is: how do I approach them about their idea for the value/sale price? Should I ask them first and then let them know what I am willing to pay based on what I know about the house. I have a feeling they will want much more than I am willing to pay, but I don't want to offend them. What are some other things I could offer to sweeten the pot in this market? TIA!