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As you say, that argument applies to both sides. But as a seller I wouldn’t blow up a deal for pennies because I suspect you’d get 5-10% less if you remarketed the property right now.
I think the strategy has to be to say “no” initially but give in if they push it. No point getting emotional about it.
You would think that any buyer with a mortgage offer from before the last week or so is in an unassailably strong position? Any replacement buyer would be paying 1-2% more on their mortgage.