@Patti Robertson thanks for responding. Good news! Since it will be my primary residence, I offered to buy it via a conventional loan, which helped me get the bid at $113,000, which is $8,000 above my initial offer but still 10% below asking price!
The loan officer I worked with for preapproval is hooking me up with a rehab loan, which includes an extra $45,000 for the renovations (will need more but I have cash to complete the additional stuff). She also mentioned that I shouldn't face too much trouble getting the loan approved as long as the house does not have structural issues, so i'll be looking for a good structural engineer since the house is on a hill.
We did get inside and it actually made me wonder if the plumbing and electrical disclosures were simply because utilities are not active in the house. It's been off the market over a year and a half, so it may be as simple as turning on electric and getting the plumbing active after a long time of being winterized.
The assessor has the property listed as fair market value at $198,000 so I feel like it was a good buy already going into it with equity (as long as it appraises). Fingers crossed it has no major structural issues!
