The problem was..when it came time to list, the appraiser wasn’t on the same page.

I don't see a problem listing it as a 3br on VRBO and AirBNB if there is a sleeping area. 

As listing inventory began building up in the spring, we saw prices soften a bit as we hit the summer months.

We have a buyer for the property and now it has been discovered that the corporation paperwork was submitted to the state as a charitable contribution even though we are listed as a not for profit organization and have been listed this way for well over 40 years.

Take a look again at your FF and AirBnB listings to see if there is any room to shake up the description to show off that you understand the needs and wants of travelers. 

I always list my flips, but I have been investing for more than 30 years and licensed for more than 10.

Even open houses on occupied rentals are a bad idea.If you want the highest sales price possible, you will have to list it on the MLS. 

You'll also need to be listed on more than just Airbnb, and they are the only platform that allows multiple checking accounts listed.

I know there is a huge shortage of housing and that has driven up price in the past couple years (along with other factors such as the pandemic, population growth, etc) so, I see listings for 2br-1bth for up to 2200 on places like Zillow, Redfin, etc.  

Active inventory is up 40% this year. https://fred.stlouisfed.org/series/ACTLISCOUUSYes, there are less listings each much but the current listings are taking much longer to sell in most markets.