I went to see the house again this evening. Here is the lovely master bathroom.
The crazy kitchen (it is pink).
And the fancy front door.
When we got to the house today, my realtor looked at the sign in sheet and she recognized a contractor's name. He had been there twice. I think he is my competition. My realtor says that the contractors are flipping the cheap houses. I figure he can put $10k in this house with his own labor and sell it for $85k, no problem. He'll make $20k easy.
I'm not willing to offer very much over the asking price so I don't really think I will get the house. That's ok though. I hope the guy does fix it up and sell it to a nice family who loves it. It has a lot of potential.