How Do I Package An Offer?

Couple has made a $700K offer on rural property. The challenge is this. With the market being slow, the value is hard to prove. Subject property is located in a rural, but stable community, with few if any homes selling; making it practically impossible to get a comp. Although a house 1/8 mile away on same street sold last fall for $875,000.

Difference it was over 6,000 sq feet and subject property is 3,300 sq ft. Neighboring house that sold last fall for $875K had 52 acres of land and subject $700K property has 17 acres. Neighboring house that sold last fall was six years old and subject property is 25 years old. So needless to say, not a true comparison. Thus, the chances of getting an appraisal for the asking price might prove to be a challenge. Without an appraisal the bank does not want to invest. Subject property owners arrived at $700K sales price based on what owners paid ten years ago and what they have invested in upgrades and improvements.

The concern is how could the couple who have made a $700K offer get a loan? Propery owners have discussed the couple putting down a sizeable down payment of $500,000; leaving a balance of $200,000 give or take. But then the question came up, if something happened and the couple needed to sell, they may end up with negative equity. Any advice or guidance on how property owners can package the deal? Kindly respond with any suggestions/recommendations.

Thank You

An appraisal has to be ordered. End of story.