I am 90% confidant I can get money for the house plus the renovation costs (from traditional bank financing and/or private money and/or HELOC on my property) but there is always the change that I cannot. 

In case you’re wondering why this government website also sounds like another online pawn shop, here’s their explanation: “Government agencies have these items for sale for several reasons.

For estimating renovation costs one would need something more detailed than a flipping calculator since dozens of little items can add up to big budget overruns.

With that being said if you are truly helping the lady and she can't go the traditional route to sell her house then I would just explain to her that you miscalculated the price you can pay and the absolute most you can pay is ..... 

What Is The Best Way To Decide Maintenance Urgency Items?

@Upen Patel...and the appraisal, survey, home inspection...all come after with a "fully approved loan" in play...If any of those items come back with an issue, how does underwriting adjust for the many things that can happen.

With the exception of one, I can see clearly where the items you listed could impact the value.

Commercial tenants are different as they can account for leasehold improvements, expense and depreciate the items, but not a resident, residents cannot account for maintenance on taxes and the owner has that responsibility.Maintenance of a residence is therefore an owner's responsibility in every state of this country! 

I know traditional banks usually don't do these and I've tried a bank in Raleigh NC but the loan officer stated that the chief executive wouldn't allow them to do this type of loan this quarter due to the amount of properties they've had to take back by foreclosure.

As for the bid, it is always a written bid with line item detail and associated cost for each.