Last night I signed the paperwork in order to make the offer to the current homeowner. They have it listed at 325K, but as it has been on the market for 6 months we offered them 310K conditional on the sale of our house. I also offered a downpayment of $2000. I think this is high enough to not be insulting to them, but I doubt they will take this offer the way it is.
Also, as this offer is conditional on the sale of mine, they can still leave it on the market and if they find another buyer with cash they can tell me I have 48 hours to sell my house or they can opt out of any deal and sell to the people with cash.
I also have a feeling they may just put it up for rent and just wait until the market is more in their favour, but I thought it was worth a try to make an offer as I think that house would suit us well.