It will help justify any credits or discounts you are asking for (Lower than asking price offer). 

The family does not have the cash to dump in the home in order to renovate it the way it needs to be so my advice would be for them to seek out an investor to purchase the home for a discount "As Is". 

I'm a developer/ high end real estate solutions company for purchasing, selling and renting in 4 states on the northeast coast, and we are presently seeking a source for hardwood floors at discounted or deeply discounted rates.

They offer a nice discount off the settlement fee.

If you were to think like Warren Buffett, this would be the time to Sell and wait for the next bottom in the RE Cycle to Buy at a natural discount instead of searching for a Deal.

She asked for a monthly $25 discount for paying 3 months-6 months in full in advance which I agreed to. 

If you are able to buy at a discount and want to get most or all of your cash out of the deal and use that same money on the next property without having to wait 6 months and are willing to pay higher points and fees for that flexibility then you may want to look into unconventional financing where there is no seasoning period.  

What is the likelihood of an accepted offer at that much of a discount?

I would need to have at least the 2% rule as a starting point, AND get it at a significant discount to appraised value. 

He gets back to me with a "discounted" bid from his internal architect and engineer of $2 sqft to get everything done.