If I were in your shoes, my wife would want the garage and I would want the unit... 

We tell all people that they can only use the basement for laundry and storage because with the rental licensing that is what the city told us because there are no egress-sized windows down there.

-Storage unitsSmall closet size or even garages. 

If you know nothing ask other people successful people what they would do in your shoes.  

They should be penalized for not getting out on time, perhaps go stay in an extended stay with their stuff in storage (or pay for the incoming tenant to do so).  

If I woke up in your shoes, First thing I would do is research all the active listings and all of the sold listings in the last six to twelve months.

The room is lacking in storage, so adding shelves/cabinets would supply that, as well as breaking up the large expanse of tile.  

Because that can lead to allegations of favoritism, and biased or colluded results.If I were walking in your shoes, I would mention the prior report (but not  the company or person), question the comps that were cited, and the FMV being reported.You'll get a fresh look at the property and hopefully a better result.

That's what I did in your shoes.

Maybe a better way to say it is that you're not a shoe-in for 80% financing in a Tier II-IV market with Freddie.