Why would you take your little green soldiers away from fighting at 15% and have them go fight a battle at 2-3% in real rates?  

The TKP or seller will smell blood.

All they would ever do was come in with a shampoo machine and suck the water out but it still smelled and they never replaced the carpet.

.- Smells can be a sign.

I love it though Sue the Bastard   knew jerk reaction to a situation that just needs a little more negotiation's.I have personally stopped escrows in this exact situation money in everyone signed but not recorded or dispersed.. one call with my instructions to stop it is all it took... if the lawyer or closing attorney did not head that and went ahead and recorded then you have cause for action.but anyone who knows anything about the legal system knows court battles take years and a lot of money.. these guys will work it out...

It has already been redone nicely inside/outside but I'm told it has a mild cigarette smell somehow.

Getting a lawyer to fight a battle, and having to pay thousands of dollars just for the ability to buy it, doesn't sound that good to me. 

If you have a realtor he should be helping you get everything you need in the way of inspections and permission to self inspect etc. etc.This deal smells really bad just from the few paragraphs you have written.

People think that everything double digit is risky or even smells fishy.

Do you smell funny or cuss a lot?