Then there's the issue with doing a 1031 which is fine but my property taxes would go from $2200/yr to $4400/yr for an identical home. 

Since your last residency was in 2020, you do not meet this requirement, so the exclusion likely won’t apply.You'll need to calculate the capital gains based on the difference between the sale price and your adjusted cost basis (original purchase price plus improvements and less depreciation taken).

I'd recommend adding those as they'll adjust your returns.  

It’s not unusual for some adjustments to happen during the loan process, but communication around those changes is really important.

I could model what held-for-sale properties would potentially sell for and on a weekly basis adjust our model parameters based on what winning bids were for the week.

This market is extremely tight and you might have to adjust your math to make things worse. 

Increased Buyer Interest: When prices are adjusted to more realistic levels, properties become more attractive to potential buyers, leading to increased interest and potentially faster sales.3.

The vast majority of states also leverage figures on a federal return as a starting point to define taxable income, making adjustments to those figures to arrive at the portions of income that are taxable for state tax purposes. 

Remind them of the peace of mind you offer by ensuring the deal won’t fall through and that you handle all the details.With a few adjustments, your approach can be even more effective in converting leads to deals.

Perhaps you could discuss this with them and they may decide to adjust the charge.