What would you offer?

We’re considering putting in an offer on a home that needs a lot of cosmetic work and has clear signs of deferred maintenance. Besides the minor things like dated cabinets and needing new paint (kids drawings on the walls, scuffs, etc), the laminate countertops are peeling up, all flooring needs to be replaced (carpets are disgusting and smell like dog), 3 windows are cracked/shattered, all closet doors are missing, for some reason they halfway torn down the gutters, and there’s some minor wood rot visible in a few spots on the exterior. HOA is on the higher end for single family homes here. Decent lot with trees in the back. House has solar panels which will be paid off by seller. Overall, the house is very rough cosmetic-wise, but the bones seem to be good. Great neighborhood.

This house has been on the market since January which is pretty much unheard of in our area. We live in a city where houses are currently going under contract in a weekend, two weeks max. It hasn’t had a single offer on it in that time according to the listing agent.

They want $440,000 which is what you’d typically expect to pay for a decent, relatively move-in ready home in our area. Nothing fancy but decent condition. At one point in March, they lowered to $420,000 and still couldn’t get any offers – they upped the price back to $440,000 for summer buying season.

Our agent thinks we should open at $420,000 but we’ve worked with her before and she’s notoriously cautious with offers and can be worried about “offending” the seller. She’s very sweet… but we aren’t really worried about offending anyone. She does think we have negotiating power and the listing agent told her “just make your offer”.

If you were in our shoes, where would you land? We will have a full home inspection. Would you lowball or come in closer to list and ask for repairs?