If it is because seller will take a much much lower price, then why haven’t they done so with the agent?

Yes, your interest rate will be lower, but the Mortgage Insurance Premium (not PMI as many people often call it) is not only a burden, but a huge waste of money (basically paying the FHA's bills).

It might be a good time to find a lower cost of entry market or just bank your money for the next downturn.  

However, I know their stressed from using all of their intellect to solve problems for a company that doesn't care about them.

It really releases you from the resentment of constantly stressing about how *they* are spending *their* money i.e.

The wealthier areas will be lower risk, and thus lower cap rates. 

Lower down payment, lower interest rate, better terms across the board. 

They could buy a house, but they really like where they are and don’t have the responsibility and stress if something serious goes wrong.

It is rare I will ever go lower on an occupied house.

So while it might need x/y/z you'll need to offer a lower price to cover the cost rather than trying to get the same price on the condition they fix the roof or plumbing.