It is an incredibly highly absurd number to ask for.  

And keep in mind that an FHA appraisal is going to attach to that house for 6 months.On the buy side I actually like purchasing a FSBO for a client because I know they are going to get a killer deal after the price is adjusted after the appraisal, as well as being able to negotiate absurd seller subsidies or repairs after an inspection since the seller doesnt know what is customary in the market.

.- finishing 900 sq. ft. of the basement, including a 4th bedroom w/ egress window would add substantial valueApparently these assumptions were false as the appraisal just came back at $235,000.  

That sometimes gives me the false impression that I am immune to bubble fever when making my offers to purchase.

If they're asking too much on the price or have some type of absurd balloon payment then I'd walk walk away real quick!  

I wish I would have heeded your last comment about not making cosmetic or just non-non-habitable improvements cause I'm sure that is how I landed myself in this absurdly unbalanced power dynamic. 

They said that if the contracting buyer didn't have the funds to buy at the time of agreeing on price with the seller - it was under a false scenerio - since they were not going to buy the house from the start.

The seller falsely claimed he was going through cancer treatment and asked if he could stay in the house while undergoing therapy.

And only because you made a frivolous attempt to falsely discredit my company. 1.

It's an absurd example, but it conveys the point.