Let me know how it plays out.

We feel that they are trying to woo us by throwing this high offer at us (even knowing they were the only offer), and then planning on playing us when the appraisal came back probably a bit lower then our asking, their bank not lending them what they "want", and then expecting us to accept a lower number (essentially our asking price) from them because we will have been weeks into the process at that point and not want to go back on the market?

Buying land and constructing looks to be attractive play to me . if real estate corrects by 15-20% then all i am losing is the 15% profit margin assuming i have assessed things accurately . 

Have you ever played an RPG where you get to allocate talent/stat points?

Last summer I worked at a real estate law firm and my interest has skyrocketed as I saw the power that real estate has.

Are non-recourse loans in play here? 

I know zoning, utilities on site, wooded/clear lot, location, ect. all plays a part in value but not sure where to start and I know tax assessors evaluations can be far off.I'm an open-minded kind of guy and even though this isn't necessarily what I targeted, if there's an opportunity..

I could have kept my single and rented it out, this would have made me eligible to purchase just not with the same power as if I sold.

Not sure how that plays into your current or potential future situation.

Seller financing usually comes into play because of three situations1- Property is not financable (construction defect, hazard, uninsurable, needs extensive rehab, etc.)