Sounds like you were rather ok with their asking price if it wasn't for the extra work that has to be done.
So why not make an offer 70 to 80K lower, so you can do the work.
Seems to me that they're a bit "golddiggers", taking advantage of the increased pricelevel. But 120K in a year ... and a house, partly in poor condition.
Just suggesting ...
Thanks, appreciated of course. We did ask the estate agent if he'd think if they were open for it, but he said that they arent because they indeed really think they gonna receive that price... We'll see. I do think they want to take advantage of the market in the wrong way... so yep...golddiggers :)