It is our idea to pledge this capital reserve account to the bank and in conjunction with the owner carrying 7% we could find ourselves needing to bring less than 5% to the table depending on the banks down payment requirements.

Obviously each person is unique.

It depends on price point and how fast things are moving in your market...I stage a few items in the kitchen and bath for pictures...and have some chairs and tables I got at the thrift store ..add bright pillows and a few plants and place on the porch or deck ...again for pictures...I don't do the rest of the house ...

It is a unique form of administrative foreclosure and has great value if you work it correctly. 

Your just not familiar so it seems strange or unique or disgusting to you but you now you know .. its routine and to be expected if you want personal banking relationships and not do business with a computer..

If there aren't other offers on the table, they might not be willing to miss out on a buyer just for $5K.Also, is this a regular homeowner (non-investor)?  

This is where an experienced mortgage broker/lender could really come in handy for you as a partner because they'll know what the perfect loan is for the asset, because each asset is unique.

In this post, please write about a unique method you have used or have heard about to finance a deal.  

Click on Connect and write a unique message to send your colleague request so it gets a high chance of getting accepted.  

Used escalation clause in a bidding war with ~10 other bids on the table, including cash offers.