Even after it has been explained to them, I don’t think they have the experience to fully digest what an investment like that would be like, every day, for the entire time they own it.

With (30 day old, same tract) comps in the area well north of 1.1M we were pretty confident we would get the most advantageous pricing pricing and rate on our refi.My wife (a local RE Agent) and I were both shocked at how low the valuation came in at.  

Is it part of a subdivision of large tracts?

It's very possible that even if most of the homes in your immediate area have four bedrooms but with clunky floorplans, a tastefully updated 3/2 might set you apart very positively, and possibly add more value.I had a similar experience where, in the subdivision of boring tract homes, my only for-sale-competition was an EXACT same house but with an added family room with a fireplace. 

HomeReady and Home Possible will not work for everyone, due to income limits by census tract. 

I am confident that my tract could be sold for that if I were to list. 

Most states have a real estate board that will offer a digest or book summarizing the issues and laws in that state.  

When you are just starting out there is an enormous amount of information to digest. 

I have been a tract home builder for 15 years before I started flipping houses.  

If it is a tract home chances that copper plumbing are contractor quality and it can be pierced by a gravel, rock or a nail causing water leakage.