I do not believe this is the intent of the ADU laws, but many jurisdictions appear to be interpreting it differently than my opinion.  

The insured sued the insurer, and the trial court agreed with the insurer and dismissed the insured's complaint. 

If they don't than I would gather as much evidence that point to them, bill them, and if you go to court you have your evidence.

they're often much more expensive than they appear because they have deferred maintenance that has been adding up over decades. 

Nevermind the unlikelihood that any ONE of them is appearing in the top 10 that often (especially at the rate we're getting bookings, I know we're not showing up on the 1st page nearly that often), it's statistically impossible for 30 listings to show up in the top ten 50% of the time even if our 30 listings were the only ones in the entire market, instead of there being 20,000 other listings.It makes no sense. 

If the seller accepts the offer, (contingent on appraisal[as per court approval requirement]), How should i proceed in the situation.

At first glance, it appears that the price you are paying it high.However, it will depent on several factors - How many states are the syndications invested in? 

Sometimes maybe often times they aren't doing enough to track down the owner or owner's heirs and just collecting checks from the court.

I know it appears costly and timing consuming, but not doing your diligence will cost you more.

I can fix any issues we can see and know about right away, it’s the hidden ones that older homes just tend to appear.