Nothing about the value of the property, if the home is priced right, that is less than a similar home without the issues you mentioned, why do you think it is worth 15% less than that? Also nothing about how you intend to pay for the home. Lenders will not make a loan if the appraised value is less than the purchase price unless the buyer makes up the difference. So there is a safety net, could be what happened to the other offer.
As for estate sellers, often less co-operative than other sellers. If the home is free and clear there is less pressure to sell and there could be some emotions also pulling on the seller.... more