If it just needs new carpet and paint and those items are going to cost 7k, I would take the purchase price down by 20-25k. 

The previous owner glued green carpet on the back patio and the front walkway.

It was a 3 bedroom, 1.5 bath, 2300 sqft on 1.7 acres but it had closed off walls, carpet in the kitchen and bathroom, garage that had been converted to storage closets for the old hoarders that lived there and the list of quirky stuff goes on and on.After closing I was going thru paperwork and found that the previous people took out a $70k HELOC 5 yrs prior and put on a new roof/gutters, siding, water heater, furnace, new concrete driveway, extra insulation in the attic, and some foundation repairs. 

Paint Carpet + 1, $20-25 per sqft3.

All the carpet needs to be taken out but the laminate floors in the kitchen and bathrooms seem to be okay.  

New carpet in bedrooms.

It was really dated and need some love, there was a water stain on the ceiling which scared people away, it need carpet, paint, bathrooms and kitchen were dated but nothing major.

Each room has new carpeting, fans, and modern fixtures.

It has cosmetic issues that don't look alarming (Paint scratches and stained carpet).

In negotiations, I got the previous owners to fix the roof, hvac, and to add new carpeting.