Buyer has ability to close, so it's a smaller loss to have the complete the purchase before the market gets worse. 

We don’t feel these are necessary, especially considering that the property already passed inspection when we bought it.We're concerned that we might be getting taken advantage of, and that these costs are inflated or unnecessary.

Is it a lost cause and I'm just supposed to fold and cut my losses??

The reason this matters is that your "active losses" can only offset active income.

I post frequently about the unnecessary complexities of most real estate investors asset protection structures and the point I normally emphasize is the lack of attention placed on the day to day operations that are far more critical to reducing liability exposure.

Other than potential liability and loss of income, none I can think of.

I been planning to do real estate agent before job loss, but have got to it yet.

Do they wait until the renter is gone in November to do the repairs, and if so, do they pay for the loss of income while it's unable to be rented?

Thanks all for your help and guidance Hey Mike, first of all, i want to say I'm truly sorry for your family's loss.

There's only so long one can hang onto unrealized losses when the cracks start to emerge.