I would do a few things to get the ball rolling.

First, I did put in a second HVAC to control the temperature upstairs separately from downstairs.

(b) All persons named or enumerated in subdivisions (a)(1) through (a)(7) may exercise the right of redemption granted by this article within one year from the date of the sale.

You'll have to grind the 4D's (death,distaster,debt,divorce) till you find someone desperate enough to take a low ball offer, like the other guys do... or if you've got the team, maybe you can do high end remodels buying 800k houses at market price in Los Angeles and selling them for 2m.

She's stalling, you need to play hard ball.

Jay, the deposit gets the ball rolling on the construction end and ensures that the buyer will move forward with the deal as in any contract.

Getting the ball moving quick.

The values ONLY work for refi's its customary in those markets for actual buyers to low ball. 

It might not hurt to consider playing long-ball with them for now. 

The trick is to find a lender and a title company to play ball.