And do they accept counter-bids after initial bid is placed?

Washer/dryers are often abused, so there's the initial cost of purchase and the risk of increased repairs.

My initial thought is that the developers may have gotten a much better deal than they would have otherwise given the clear limitations on the land's use.

What I was referring to was that I know two private lenders who have the borrower complete the Deed in Lieu documents at the Closing of the initial loan and then hold them in escrow during the life of the loan.

Initially, I thought I could split the lot.

If so, how did you approach it initially?

Paint rags and paint plastic $386.66 Initial 70% deposit Cabinets $13,029.02 Backer board, Fiber rock, Shower drains, Zinc backer board screws $385.71 Junk Removal $600.00 red gard ($123.10) Initial 50% deposit Windows $10,493.20 2x4 studs $52.33 Junk Removal $400.00 Flooring sample $6.01 Flooring sample $68.48 Flooring sample $62.62 Flooring sample $132.09 Paint samples for accent wall $38.34 10% Draw for Master bathroom demo $580.00 Wall and shower Tile+Grout-Guest bath $528.62 LVP Flooring $7,165.27 Demo Work $1,275.00 LVP Flooring $7,198.07 Floor tile-Guest bath $889.05 50% down for moisture barrier and animal extraction $2,541.30 Returning flooring samples ($263.19) Paint-2 5gallon buckets SW $382.38 Unsure on what these are $19.54 Unsure on what these are $48.00 Master shower floor tile $331.42 Paint $3,100.00 Flooring underlayment $888.42 Primer $178.71 Paint-5 1gallon buckets SW $180.26 Paint $3,100.00 Appliances $6,820.59 Master bath tub $986.76 Paint-1 5gallon buckets SW $194.81 Primer $268.54 Framing repair for rotted wood $1,000.00 Junk Removal $500.00 Floor tile-Guest bath $771.07 Floor and Shower wall tile-Master $4,559.43 Stair noses $334.20 Master shower floor tile $612.76 Farmhouse sink $385.91 Master ceiling paint $254.29 Drywall repair in kitchen ceiling $500.00 Childrens wall tile and floor tile $3,477.40 Master shower floor tile-Return ($331.43) Drop in sinks for children's bathroom $103.75 Drop in sinks for upstairs bathroom $51.87 Master sinks $147.64 Master floor tile $270.05 Electricity $169.70 16x cement backer board return ($139.60) Tub and shower faucets $414.96 4 x Toilet seats $788.22 Tile install materials for all bathrooms $863.00 Air filters $10.90 Gas pipe and AC tune up+Duct repair $1,216.00 Tile install materials for all bathrooms $984.78 Roll of insulation X2 $38.48 Primer refund $125.33 Shower faucets X2 $480.71 Water $11.41 Master shower floor tile-Return the original white one ($261.55) Demo and materials he bought $1,005.14 Pickup charge for picking up flooring $223.96 Flooring 1st payment $4,000.00 Flooring return-guest bathroom tile ($889.05) Red guard refund $71.34 Backer board, wall tile and floor tile upstairs master return ($134.34) Keys X3 $10.93 Remaining balance for moisture barrier $2,046.30 Subfloor repair $100.00 Flooring $9,900.64 Master tub filler faucet $311.35 Tile labor in all bathrooms $9,202.22 Stair treads and risers $1,160.76 Bathroom painting $2,000.00 Junk Removal $150.00 Return for stair noses ($334.20) Return for flooring ($13,488.73) Flooring $1,900.00 Flooring underlayment $899.35 Trim $1,053.17 Toilet supply lines $13.46 Tile sealer, garage epoxy, garbage disposal $313.00 Return for remaining balance ($1,098.57) Floor reducer $49.99 Garage door opener $267.66 Door hardware (Hinges and door handles) $451.14 Counter tops $5,287.01 Tile return ($981.43) Tile return ($685.14) Tile return ($385.53) Tile return ($153.19) Tile return ($613.13) Flooring $1,900.00 Plumbing and electrical work (Light fix, toilets, drains) $975.00 Light fixtures and faucets $975.49 Junk Removal $125.00 Baseboards $241.45 Switches, outlets, faceplates $234.53 Cabinet balance $5,583.86 Sink return ($155.62) Dining room light and 4 ceiling fans $923.70 Anti skid additive for garage floor $11.38 Flooring $1,900.00 Glidden gel paint $24.01 Paint refund ($1,046.40) Counter tops $2,304.23 Extension rods for ceiling fans $40.64 3 Ceiling fans (one was returned) $573.93 Return grills $100.11 Kitchen and nook light fixtures $283.80 Rod for curtains and toilet paper holder $84.10 Curtain rods $54.60 Garage door deposit $1,185.00 Cleaning $400.00 Water heater $756.18 Thermostat $181.41 Stump Removal $300.00 Dryer cord $28.53 Plumbing and electrical work (Light fix, toilets, drains) $3,525.00 Junk Removal $125.00 Grass seed $71.40 Return of shipping cost ($297.45) Duct cleaning $970.00 Drains for master $46.54 Sold Fridge ($200.00) Bathroom fans $91.92 Samples for brick $29.98 Peg board hooks $20.83 Wall plate covers $21.28 Steel pegboards $140.72 Return stair tread and Riser ($198.14) Pressure washing $1,216.00 Wall plate covers $8.11 Shower door for upstairs $729.83 Powder room counter top $702.99 Light bulbs $59.24 Shower door deposit $1,000.00 Staple gun, staples, supply lines $157.04 Bathtowel hanging hardware $130.89 Light bulbs $29.62 GFCIs, underlayment, downrods ($233.54) Sanding pads $59.10 Yard hanging tools $21.94 Supply line return ($13.12) Stair clips and balusters $779.58 Returned some bathroom tile ($109.05) Peg board hooks $120.04 Front door $3,235.01 Brick sealer $50.81 Bathroom fan light and peg board hooks $71.27 Sanding pads, sanding sheets, etc $38.48 Mirrors $65.84 Mirrors $291.88 Spray bottle for marble sealer $4.34 Brick backsplash $695.54 Sanding pads $2.20 Shelves and shelf brackets for storage room $73.14 Shower door balance $1,000.00 Mirrors $104.26 Returned mirrors ($89.50) Gutters $2,043.15 Floors for finishing room $373.78 Wall plate covers $8.07 Floetrel and hood vent $31.49 Plumbing and electrical work $175.00 Backsplash and fireplace $2,450.00 Trim paint $50.21 Tile for master finish $15.17 Returned something.

Upon arrival I noticed the curb appeal and thought it was overdone (of course, I initially didn't say anything to the owner).

Initially, your search may be discouraging @Yael Doron. 

I am aware of the formula you referenced in your initial response.