Because of my homework I know that they wont close at the end of the month because if they want to apply for violation fees reduction, the Board meets only once a month, and they missed the deadline.

The good news is that I am still in my due diligence period so my first step is to negotiate a drastic reduction in price. 

If I use interest to make up in the long run for home price reduction, I'd be offering something like 4.5 - 5 %  -- Is this too high for investors? 

A 1% rise in interest rates is essentially a 10% reduction in purchasing power by the future homeowner.

I understand that maybe your buyers did want to go through the purchase, but decided that this was not a pill they were willing to swallow.

Would you agree with market rent reduction for a tenant who is behind on current rent?

You list it and it gets no traffic so you are begging for a price reduction.

Start a sensible weight-reduction plan...today.

It's built in 2004, just listed (so no time for a price reduction), looks to in really good condition, and is an SFR.Because of 1 and 2 you're competing with homeowners that want to live there, send their kids to school there, etc. 

But what could possibly come up to justify such a price reduction?