I already know the challenges that I face ahead of me as far as finances.

My mortgage is so new that it hasn't showed up on my credit report yet (at least not according to Credit Karma).

Chances are you are correct in so far as they are probably building a higher end apartment complex. 

I am adding a dishwasher, microwave, and garbage disposal as well as recessed and pendant lighting and moving every other outlet and light switch around.The price I just got to put in a 200 amp panel and move it from inside the laundry to outside at the other end of the house was $3000, but that depends on what the power company makes them do as far as moving the meter and where they are allowed to put the new panel.The price for the rest of the work, which essentially amounts to rewiring the whole kitchen adding a handful of new circuits and some of the den is another $3000.

@Adam Pierce Real estate is so local.

As far as the house next store, I doubt it is a comparable.  

You will probably need to increase the gas line into the house and add some vents out the side of the house, so location matters as far as that goes; if the water heater is in the center of the house it could be interesting.

Any advice would be greatly appreciated as far as a strategy to getting an accepted offer.  

there is so much land, they can keep sprawling out.  

As far as townhouses go, I am still learning about townhouses.