Account Closed explains.

@Jonathan NewcombCan you explain what you mean with the falling off homestead?

There is some rules around HUD as well but your broker will explain that to you. 

I've never had a buyer back out once the 1031 was explained to them.

When I last did an increase (of a mere $30), I explained that taxes and insurance went up (my mortgage payment really did increase by about $30 too).And as long as you are providing her with a great customer service and housing, then you should be fine and she should still me happy.

I hired a public adjuster and he took over everything (and explained WTF was going on in the simplest of terms so my brain could understand) and he got us 150% more than the original offer.  

I'd call them and explain the situation

If you need more clarification you should contact your lender and ask them to walk you through it and explain the difference, but really all there is to it is the list you referenced are all closing costs except the 20%, which is the down payment and is separate/in addition to any closing costs.

However, we would go from passive income as landlords to having to pay self-employment taxes, plus commercial insurance (which is double the cost), plus all of the costs of setting up these LLCs, plus added taxes, etc.I manage the property and do basic repairs, but everything else is contracted.So, for all you real estate gurus...Can anyone explain why to do an LLC? 

If after explaining objectively the situation your clients decide they want to go to court, then go to court.