The buyer knew this and went several times to evaluate before they signed contract.

I have been evaluating real estate deals for flip properties & rental property opportunities and have been struggling with estimating the repair costs for properties that are stripped or are requiring more work than the standard renovation upgrades.

How would you evaluate this offer?

What's your take on when to evaluate the ARV?

Let your buyers know that a licensed structural engineer has evaluated the foundation and that there are no issues and provide them the report.

@Eric Creager I'll play devil's advocate by saying that you *probably* don't need one, unless you plan on using it outside of your own investments or as a future realtor.First, you should deliberately evaluate your goals, strategy, and what will have the most value to you. 

Your question is very open ended and without knowing that metrics the other side working with to evaluate the deal, everyone will seems to be 'overpaying'. 

In our initial evaluation there was a land locked parcel included in the sale.

If you get a deal that has 50K in profits, ALL your buyers that would be happy with 25K in profit will jump on this, so nothing lost removing those greedy unrealistic ones.Secondly, if you sign a contract with 50K+ in profit, get a hard money loan and do the deal yourself.So now moving on...Once you have a solid ARV, and a COR, and the average profit your buyers are looking for.. re-evaluate the offer made on the contract and see if the work needed and effort involved to fix up the house is worth the profit.If the house has structural damage you can expect the buyer taking up more risk and they want a higher profit.

You helped articulate in words my own concerns better than I could of.I don’t mind sharing the numbers with you, but I was hoping to keep this discussion on point relating to the question at hand of waiving an escrow and not deviate on a tangent about evaluating a deal.