There are two defensible approaches here: reflect the work in the opening price, or offer nearer the seller’s figure and deal with confirmed defects after inspection. I lean toward staging it because 98 days is not proof that this particular warehouse is overpriced.
The cost of the updates...
APR is a useful first comparison, but I’d also calculate cash cost through the year you realistically expect to sell or refinance. A fee-heavy loan can look good over 30 years and still be poor for a shorter stay.