I am wondering if it is customary to make earnest money non-refundable in exchange for an extension of the closing date. This would be our first extension of a 75 day contract. We have completed and are satisfied with DD.
We will have over $45k into loan apps and other costs, which we’ll obviously lose should the deal not go through, and now the seller is asking for $25k to be forfeited if we can’t close by the end of the 30 day extension FOR ANY REASON, including the property failing to qualify, i.e. for an unexpected drop in occupancy.
What is customary here? This is a $2m deal, to put it in perspective. Have any of you tried something different that seemed to satisfy the seller? I’m an investor, not a gambler! Or am I thinking about this wrong?