Need advice on negotiating on an overpriced house

Okay first of all thank you for taking the time to read this. I live on the big island of Hawaii so my housing neighborhood options are limited due to lava zone and insurance restrictions related to lava zones. I found a house that I really love because of the potential. Someone bought this house in January of this year for $200,000 and has “remodeled it” by removing all sheet rock and flooring, adding new cabinets, and new appliances. They are now trying to sell the house for $450,000. I don’t feel like this passes. The sniff test in terms of value added. Is there a better method for negotiation inthis situation? The comps in the neighborhood range from 350,000 to 395,000, which is more in line with our budget. However, most of the houses in the neighborhood are boring and have no interesting features and despite this remodelers attempt at removing every interesting feature from this house, they were not successful.