New guy needs explination

[Gene Seifert]

Equity/Spread: $139,000
After Repaired Value: $495,000
Cost of Repairs: $0
Asking Price: $356,000
Seller is willing to give back $85k and pay 1% towards the title policy. Seller states that closing cost won't be any more than $6k with his title company. Seller will send appraisal upon request.

Now why would the seller give back $85k? What is wrong with this deal? Or is this normal? Need some of the experience here to explain and advise. Thanks!