You can find that a seller is moving out of town and arriving at a new place in say 45 days, offer to match the closing date or a few free days as a hold over moving out.If they are going to rent, and you have another place cut a deal in the offer if they would be interested, the listing agent should know what the plans are.Find any problem the seller may have and solve the problem is the easiest way to put it.Work with the listing agent, if properties are moving at 20% above the asking price, make your offer in line with the market to begin with, really want it with your emotional side, heck, it's only money!

When I arrive I see that the home had been condemned and upon speaking with two neighbors I found out the the owners are all dead and the home has been vacant for 20yrs.

That means there is turnover, and new people arriving all the time.You might want to contact the housing office at UofH.

A better conversation would be to ask how they arrived at the asking price.

Your lender setup their loan application incorrectly as a purchase if it was a refinance the costs wouldn't be 132k which is assuming a purchase price of 120k plus a payoff and closing costs which is how the cost total arrived at 132k.The cost should instead say about 13k and new loan to be 84k for a net of 71k proceeds to borrower approximately. 

Welcome to BP.With a family due to arrive, your life will be busy, but once you and your wife decide what types of investing would be good/better/best fits for you, then you plan how you will jump in.One option that could be available to you, if you fancy being a landlord is something you could do,  is to find a du/tri/quadraplex that would serve both as your family home and bring with it tenants to help pay the mortgage (and sometimes more).  

@Pedro Oliva There are some critical numbers that you need to arrive at:1) ARV - After Repair Value.

If the two appraisers arrive at different valuations, then these two valuations shall be averaged in order to produce a final valuation.

Then, with the offer, include a cover letter that goes into more detail about how you arrived at your offer.

Two good responses promptly arrived, which provided the exact coverage I needed and at a reasonable price.