Should I have thrown a Contingent Offer at them as soon as I saw the numbers which could've bought me some time to inspect the property and gather the finances?

They don’t want to see loan contingencies or other escape clauses. 

Make your offer contingent on them moving out.  

(emphasis added).Unless I'm misunderstanding you, this is a formula for disaster, Perhaps you're suggesting @John Keenan load up his offer with contingencies that will allow him to bail out later when he's finished his homework?

Is the option price you agreed on contingent on traditional bank financing or seller back financing?

This will allow a contractor to put together a decent remediation estimate (I would include a reasonable contingency since these rarely go as planned and the moment you tear something down you find something else to deal with). 

This lack of activity across the board is the biggest concern, hence the interest in contingencies such as deed-in-lieu-of, or similar, in the event that the continued marketing, open houses and aggressive price drops don't generate a buyer.

Have a contingency in the contract that it is subject to an acceptable negotiation with the IRS.

However, there are some things that don't make sense to me:- The properties in the nearby area are listed for much more- Judging by what I read on BP, most good deals are found off-market these days whereas this property is on the MLS- This property has been listed for 6 weeks and is not even under contract, contingent, accepting backup offers, etc.

Forecast out Prime rate and see if you have a contingency plan for what you would do if rates go to 8%,9%,10%.