Given the previous replies, here's my speculation on a possible strategy/business model for this.

Here's where  energy modeling and rating systems like the Dept of Energy Home Score helps with marketing and can lessen sticker shock in any state: Imagine there are two homes for sale that are pretty identical in size, location, year built etc.

What is the business model?  

My question is, does anyone have experience selling this model home, and have your buyers expected the compartmentalized original feel of the house?

We manage several of these hybrid business models for investors who bring us properties to manage and it works great at first, but maintenance cost get out of hand soon after purchase.  

In CA you would likely be crossing the line and performing functions that require you do be an Attorney, or Licenced RE Broker or Agent.Yes, my wife is an agent, and specifically holds her license for the purpose of our business.That said, once you have a property under contract, you have "equitable interest" in that property, and I don't know of any laws or NAR regulations that would prohibit you from marketing that property at that point...EVEN WITHOUT A LICENSE.If you know of some law/regulation that would prohibit the marketing of a property that you hold equitable interest in, I'd love to hear it, as it would affect the business model of a lot of people I know...

Now the previous owner is saying that all the damage that was done to the property was done while I was in possession and wants me to pay for repairs.

You have to line up a buyer, who takes possession at a double close.

How unfortunate they were to have such poor roll models.

It's one of the smallest models (1280 sq feet), so appropriate for either younger families, or even empty nesters.