We made a low offer last night, and they've come back with a counter-offer, which is still below the asking price.
So long as the repair aren't enough to send us to the poorhouse, it's a good deal. Chances are we'll take it.
And here's a bit of good news: the contractor who was recommended to DH has excellent reviews on Angie's List. In addition to that, he seems amenable to fitting the kitchen with vintage.
Last night we walked around outside, again, and checked out the garage again (which is classic, no-frills 1930. Awesome. There's even a rusted old radiator on the wall!).
I still can't believe that the back yard is paved. Oy. But if DH rips it up this year, we can have a small square foot garden next year. And some herbs.
The whole area will need to be graded, too. And the following year we can get rid of the desk and put in a flagged patio area, and top it off with an awning over the French doors (which will replace the sliding glass door).