You can even use this as a bargaining chip to ask for a price reduction.

That's WAY more expensive.There are real damages here, however:Holding costs during the period under contractTime costs for work put into contractA possible future price reduction on upcoming offers after the property is re-listedI believe it's far better to find an amicable deduction from the earnest money based on those above items.

My Condo has a private entrance, 3 bedroom 2 bath, and allows dogs with NO weight restrictions which is pretty uncommon around here. 

If you can take a reduction today, I can buy the house before it goes to foreclosure and you save the foreclosure expenses and risk of it going to the city if it doesn't sell.They might be more interested if you want to increase the tax value, for example if you want to build a house on it.Otherwise you have to wait until it goes through foreclosure and you never know when that will be and at what price. 

LOL.. and those folks don't post on BP.. on BP its all blue sky rentals are the way to financial freedom quit your day job.. live the life you deserve etc etc.. well for some for sure.. for many NOPE.. they are like why did I do that.. and they exit no matter the loss.now this is more prevelant in the lower value asset markets.. not all markets are like this.But I look at when I started hard money lending in 01 for turn key and I started in Detroit.. the homes there appraised at that time for 120 to 140 each rented for what they rent for today 800 to 900 in those days the .05% rule was fine.. we loan 80k as a HML .. well those homes tanked as you probably know many went down to less than 10k in value.. thankfully the 200 plus I did there I got refinanced out of them all. but you know long term lender lost their lunch and so did most of the investors in those days.I am not prediciting another major meltdown.. but even  break even is not a good position to be in with rental properties in my humble opinion the risk/reward and hassle factor just weights on you.. but I know I am in the VAST minority in my thinking.So my thought is you really need to get these things paid for and keep them forever.. but life happens and I would say 80% of people that have that thought process going in never make it past about 7 or 8 years.

Most weight given to last 2 years.7.

If you have grounds for a reduction, recent arms length purchase or neighborhood comparable sales that prove a discrepancy in value it’s an arduous, but not difficult process.

@Ivan Barratt  I don't know about that just opinionated  :)  its not rocket science just buy close to the median in a given MSA use a quality company and a very good PM and things should go OK for you.its those that are determined to find the highest return and don't weight the risk or don't realize that risk is pricing the market..  

Every market is different, but I know in my market here in Connecticut an offer with no inspection contingency and a high earnest money deposit amount carries a lot of weight.

In my area, 3-plexes and 4-plexes, generally one tenant is given a rent reduction for handling garbage cans and garbage bags, pulling the cans and bags out to the curb, and back again after collection.