I would suggest that you ask your realtor to do a comparison of the homes that have sold in your area in the last three to four months. The realtor will have to do adjustments on the comparables based on the location, size, condition, and general market conditions. If the last home was truly comparable, and I had looked at the location, size, condition, amenities, and general market conditions, then I would say that $200,000 becomes a ceiling benchmark. I would suggest hiring a roofer to give you an estimate on the roof cost and put that in my pricing adjustments. Most re-roofings cost more than $5000 so I would be careful here. I would suggest that final offer would be around $192,000 all things being equal when the comparables are adjusted. You would need to start a bit lower than that to get to the $192,000.