Something doesn't sound right, does the Realtor have a buddy in the bidding? 

@Dustin Cook offers sound advice--I suggest you heed it or prepare to get swindled. 

Hi Amy,  New folks under appreciate the costs to build new vs buying existing foreclosed at 1/2 or less of replacement cost.    

It sounds like you and your wife have a solid plan and her experience in condo management will be helpful.

Does this sound like something that could work?

Not to sound rude, but if it was such an easy question you would have the answer by now.

You've got a LOT on your plate and only you can judge the family dynamic that you'll be working within but IMO you want someone you can dictate to and expect them to fully comply; if they don't they get replaced.  

So I would expect for the seller to tell you to take a hike, and you wont have to worry about your offer.Regardless of the repairs costs, unless you have reason to expect the appraisal came to the value in error (bad comps, errors in the specifics of the property, etc), than the $340k number was never going to happen.Sounds like the property has multiple problems, and it sounds like your not an expert at spotting these and have to rely on contractors, I would recommend you run from this property.  

Hey @Varinder Kumar -Sounds like exciting times for you!  

I am interested in getting into the commercial market years down the road, it sounds like such a daunting subject...