So we placed an offer on the Pine Needle House (the most recent photos below, the bigger house). We offered 88% of their asking price and expect a response by tomorrow. The seller didn't flat out turn it down so that is a good sign.

The house is still on a septic tank so that is a bit of a concern, but we are ok with it, and accounted for future improvements in the offering price. We hope to get an acceptance or counter by tomorrow evening.

If this doesn't work out, we are still interested in the yellow house.