The home may be priced just about 5% too high. Considering the low inventory and all the features and benefits of the home they just might get the price they are asking. They may have a problem when it comes to the appraisal though.
How much is this house really worth? The home is worth what the seller is willing to sell it for and how much the buyer is willing to pay for it pending appraisal if financing is being obtained.
If you like the home you can always offer what you think a home is worth and begin your negotiations from there. Or go ahead offer their price ask for a % of closing costs and wait for appraisal and re-negotiate at that time if the problem arises.
Keep in mind your lender will not loan you more money than the house is worth.
If I can be of any assistance please do not hesitate to contact me. I am located on 7th right off of Mountain.
Many homes in the local area near this property are selling around the $200/s.f. mark. If you add that up it would put you in the mid $400k's. I have not had the opportunity to view this home and it is appointment only. I would give it a price around $445k and keep in mind this is not having the chance to take a closer look first. For a little more money I see homes selling with larger lots and more s.f.. If you would like further assistance please contact me with your needs. I work the local area and many others, my office is down the street.
Thanks for your time.
Keep in mind, that comparable sales don't always take into account the condition of the home. If this home is in need of a lot of work, then the actual value could be lower than the comparable properties. If it is in pristine condition with desirable amenities, the value could be higher than the comparable properties.