Appraisers have general numbers for specific line items on repairs so you can not exaggerate here but you can certainly use "retail numbers" and not actual costs.I provide all appraisers with a list of comps, I detail out each defect or amenity in each comp and use this info as support for my subject property valuation.

If the flooring is installed correctly, the manufacturer will warranty it, but in over 20 years of remodeling, I have never had a product fail from manufacture defect.

I seen estimates of over 60 million titles have some sort of defect, eg. broken chain of title.A few lenders, for the sake of squeezing out a few more bucks, destroyed 800 years of common title law.

@Chris ShanahanHonestly, buying at auction is not recommended for newbies to real estate investing.There is really a lot of risks involved with buying properties at auctions (very rarely, you can thoroughly inspect the house before you own it; there could be some title defects) Additionally, like you pointed out, raising the finances within the time frame required to close is very challenging if you don't have the cash upfront nor a track record of having done that.Having said, if you are confident that you can do it, then go for it. it is not rocket science.My suggestion is simple. 

Simple as that.Now, it could be the house has some defect - too small, on a busy street - or that there really isn't much demand in this area.

Terms are excluded that are not applicable, such as inspections, however, a tenant/buyer may still want a mechanical inspection, just because it works doesn't mean there are defects.

Two suggestions: talk to the broker that put in your bid and see if s/he can find an escape clause or knows how to bail out; if you have done an inspection, look for a material defect that could allow you out of the deal.

The blow up of water heaters comes from the temperature and pressure valve (T&P) being omitted or incorrectly done or defective.

Rather than making some adjustment, use ONLY comps with the same location defects.  

Do not make any promises that the advance list will reflect all defects as you may find issues when the place is vacated.