Will seller being on hospice affect selling price of property?

[Zac Schmelzer]

I am in verbal agreement with a seller and her family. The seller is old and on hospice. They want to owner finance for 10 years. The house is in bad shape but the price we agreed on is lower than what it would appraise for as is. No official appraisal has been performed at this point and don't plan on it. Wondering if hospice would get involved with the value and sale price of the property? 

Reason I am concerned is in the past I had a house in contract with a down payment with the seller (heir) when it was in probate. The judge that was dealing with the probate case saw my low contract price and voided my contract. Judge requested property be put on MLS for the appraised value and it sold full price in two days.