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aggi
FWIW my team of one's position is if you have to renegotiate then you have to renegotiate but the seller will look dimly on it (who cares I guess) and going in 'hard ball' is not the way to do it. Or maybe it is, if you don't give a fuck about whether you get the house or not.
I guess part of the seller's job is picking a buyer who can actually pay what they've offered and they might feel a bit silly that on this they failed.