The standard of condition is also governed by "normal wear and tear".

It depends on the condition of the home as well.  

Also: If you don’t know much about the Tallahassee area, there’s a great supply of potential motivated sellers based on the condition of homes here.

By negotiating not only the price based on condition which had a laundry list of problems including a hand full of larger items but also that we had the right buyer willing to figure out the problems throughout the transaction and take it on.

The low inventory problem has been a chronic one since the Great Recession, and the pandemic only amplified the problem.

Owner-occupied conventional loans typically go as low as 5% and sometimes as low as 3% in special conditions. 

My husband and I want to purchase a home from his grandmother who has a POA (Husband’s brother) due to her age (95) and condition.

The one caveat being only if it is in really bad shape and needs to be cleaned up.Is it in good condition? 

That's a great question, and I think you nailed the issue - there's not a standard definition/criteria beyond it can be rented in current condition.

Depending on the condition of your property, you'll have a builder's risk policy, vacant house policy, and finally a landlord policy (basically the landlord version of a homeowner's policy).