The definition of all those terms are obvious, but if you're trying to back into a pro forma you're looking at or create your own how do all those elements work together?

Carpet, like many other elements in a house, does need to be replaced periodicallly, like windshield wipers on your car, which is why no warranty on a car will cover things like that. 

Though I am not entirely experienced in this subject, I recall from some of the podcasts that larger banks like BoA can sometimes offer lower interest rates on their products under certain circumstances compared to a smaller bank or portfolio lender. 

The house is in comparable condition.I'm aware a lease is not a sale, that I could/should record a long term lease (beyond 3 years), but perhaps I could structure the deal first as a 3 year deal then with the option both to renew or purchase at the completion of that term.

I live about an hour south of Pittsburgh, so real estate here is pretty cheap compared to other places. 

I spend a lot of time looking at comparable properties, market trends, demand, sales volume, etc..., before I invest in anything.  

It happens when you deal with social marketing, and those kinds of responses to ads CAN be useful if you try and make em useful.I try to engage those complaining and ask for comparable in the area.

Over Improving would be fixing/renovating a property to a point were you will not recoup that capital investment because the neighborhood comparables will not support a value that high.An extreme example would be installing a $100,000 in ground swimming pool and patio in a home in a neighborhood where the homes typically seller for $85,000.

Keep it simple, and offer with them paying their normal fees, as most offers they are comparing against will be structured that way.  

I know my general area I live is expensive compared to most of the U.S.