No, there shouldn't be a rooster at the property that attacks the appraiser, and yes the utilities should be on and functional when the appraiser shows up.

I was told this was not proper. 

Much more likely to make a mistake and buy in the wrong area and overpay if you don't do the proper research.I generally only recommend to more seasoned investors, but it can definitely be done.

(AA) "Associate broker" means an individual licensed as a real estate broker under this chapter who does not function as the principal broker or a management level licensee.

Perhaps a single family with just a basement Nanny suite where there is no fully functional kitchen, i.e., no stove ? 

they purchased the property to sell and that disallows it for 1031.The more proper way to do this would be to sell as yourselves and buy the replacement property as yourselves (letting your son help direct what you buy). 

I am in the process of transferring to the new, more functional one that has way more bells and whistles. 

I have no idea if Zillow is accurate or not but more modern homes in the neighborhood are selling for $200-$300k so it may be a good rough estimate as I haven't had it properly appraised yet.

You need it properly converted with permits to have it zoned as a living space (second unit) otherwise you will violate your insurance.

Hi David,This may be too late for you, but this is a common issue when laying tile over top of concrete if not done properly.