It could be that their source of "fair market value" simply doesn't represent the current retail market, which can fluctuate wildly and rapidly.Tax assessed values are generally based upon a % of "fair market value". 

Other than hating the roof, the house looks nice and I agree with everyone else that you'd be much better served just spending the money on some nice landscaping beds to focus in on the pretty front window (no shutters needed...).

I've heard that making multiple offers on properties and offering below retail value is unethical and so forth. 

I don't know how much - talk to a local realtor who does a lot of condo sales in the area, they should be able to tell you how much an extra bath/bed  (or lack of bath/bed) could change the value. !

So retail prices will mostly stay the same.If you client is looking longer term it is a great time to buy... when the right home comes along.  

I started on the retail side and moved into private capital and secondary markets as I grew in experience.

Unless you plan on developing a gas station or retail plaza, assuming that area needs them, I'd find a better place to invest my money.Sorry to be negative.

I would say a place that posts on Craig's list (meaning it's in decent shape) would start at $1,200 for a 2 bed 1 bath.

The bacteria produces a gas that smells like S, & it can certainly damage the resin bed in an ion exchange unit or produce a black slime that builds up inside the unit.

Meaning that, as others said, if you paid full-blown sucker retail to expensive contractors, that's what it could have theoretically cost.