It can be for the right buyer. Someone who just sits on cash getting a near zero return. Someone who also wants to build a custom home with consultants who have a long queue, and have to deal with a cumbersome review process. You can easily take 2+ years to be shovel ready. Add a few months for getting your GC of choice.
There is ~600k discount here. Seller got screwed. Better to sell at FMV and rent whatever the hell you want.
I agree. If I was looking to build something nice sometime in the distant future, and I had excess cash doing nothing, this wouldn’t be a bad play. In fact my coworkers brought this up before this forum and I said jokingly, if it went for say 1.1M I’d be interested. Looks like I missed out 
Of course I’m missing the ever important cash to burn part.
Just curious, but how would the property tax be assessed? Would it be based on the 1.1M sale, even tho its below FMV? Wouldn’t the State/County think its an non ARM transaction? Also, will there be any tax consequences to the seller for selling that low?