The seller can be left in a bad situation where it must either accept the lower price or lose the sale and re-market the property.
[2] The purpose of a due diligence period is to allow the buyer to fully investigate all of the claims, warranties, and representations a seller has made.
In troubled real estate markets, like that experienced in the Great Recession of the late 2000s, it was common for some buyers to intentionally misuse the due diligence process and to initially offer a higher price than they are actually willing to pay in order to control the property and renegotiate later.
Some sophisticated sellers are adopting the strategy of refusing to renegotiate so as not to reward the practice and to discourage re-trade buyers.
[5] On the other side of the purchase/sale transaction, some buyers attempt to distinguish themselves from the practice and pride themselves as having a strict "no re-trade" policy, touting that they do all their due diligence up front and don't demand last minute purchase price reductions.