Need help pricing a car!

So I'm looking to buy a Ford Focus Hatchback. After going back and forth with a few people for the past few weeks, I finally found a good one. It's a 2014 Ford Focus SE with 45,000 miles and the guy is asking for $8,500. After talking to the guy, he informs me that the car does have a rebuilt title but only because of hail damage. He had full coverage and his insurance replaced/repaired the roof and the tail lights.I met with the guy's wife today (he was at work) and I inspected the car all over, popped open the hood, and even took it for a short test drive. Structurally, everything is sound. The engine is perfectly fine. There are no leaks. Interior is damn near perfect. Paint job is great, a few minor scratches and a small dent on the drivers door from a shopping cart, but hardly noticeable. Looking at the car, you'd never know it went through hail damage and it has a rebuilt title.My dilemma now is the fact that it does have a rebuilt title, I'm not sure how much to offer for he car. I don't think it deserves the full $8,500. KBB values the car at $8,600 but reading through some FAQS on KBB's website, it stated that cars with rebuilt titles resell for 20-40% below marketable value. So going with the lowest option of 20%, that would be around $6,800. Should I go for a higher percentage and offer less or stick around 20%? I'm not sure what to do.I live in Orlando, if that means anything. Thank you! via /r/cars http://ift.tt/2ujsCba