It looks like sale prices are quickly declining in Delaware over the last year/several months.

Not to knock Wapello, but it is a small and dying Iowa farming community whose population is in decline (per US census) and will get worse as the older folks die off and small family farms are consolidated. 

exact same thing happened to me 2 years ago,, VA appraisal / financing,,, Once a appraisal is on record it stays on record with FHA or VA for anyone else looking to purchase if you decline to sell at lower price to them..

The listing agent responds with"I will submit this but it will likely be declined, My seller already came down $30k and we already talked about reducing the price if your buyer won't take $150k."

County has declining population so this is kind of a niche but stable market.

Then, if they decline the offer, depending on their motivation and based on their feedback I can constructively guide the seller toward listing on the open market. 

Not an option, unfortunately; previous owner will not negotiate rights with me because I declined to buy them before the auction.  

But they tend to decline in value during downturns.

@Tom Lafferty I am about to do something very similar (78 units, "overpaying" a little, extreme upside, management let it decline over the last 15 years, etc.).

If ESPN leaves....) job growth and population growth are stunted and probably on the decline.