Renovated House Showcase

Needed lots of love. Including, roof, floors, paint, upstairs (to the studs), new lighting, kitchen/appliances, bathroom updates, graded, trees removed, river rock.
Guaranteed Agreed upon Price (value of home) - $70,000
Labor + Material (We Front) - $40,000
After Renovation Value - 145,000 - 160,000
User Case: House Listed at 155k is
155,000 - $40,000 (Labor and material paid at closing) = $115,000
Additional $Value is $115,000 - $70,000 (Agreed on price) = $45,000
/ 2 (Split for adding value) = $22,500
Seller Walk away with $70,000 + $22,500 = $92,500