Hi Fly, it sounds like this buyer has definitely moved on. I don't think it is safe to assume that your broker or the requests that you made, were the reason that they decided to look elsewhere. It is actually surprisingly common for buyers to get cold feet. If they were truly committed to your house from the beginning, a brief delay for a clean offer and review should not have been enough to make them skittish. It can be frustrating negotiating at arm's length because it is sometimes difficult to get an accurate read on what is happening. However, if these folks jumped ship at such a small request, I am afraid they might have been real trouble for you in inspections or in obtaining loan commitment. By then, the house would be showing as "Under Agreement" and "Back on the Market" in the MLS system, which always makes subsequent buyers ask - what went wrong?.
A couple of other thoughts, it is common in the area of MA where I practice for the expiration date on the offer to be seen as more of a goal than a specific technical deadline. If both parties are happy with the terms presented, and we are moving along, then it is not usually seen by either party as a crisis if the offer is not signed by the expiration date. Of course, the date and time of expiration can become critical in multiple offer situations, but it doesn't sound like that is what you were dealing with. Also, it is unusual, again, in my experience, to have an offer reviewed by attorney's for either side before being signed. The offer usually used is the boiler plate, fill in the blanks variety which doesn't leave us lay people too much room for legal wrangling. We usually leave that to the drafting of the Purchase and Sale contract, which the attorneys for both sides are very involved in. Was there something specific in this offer which was making you nervous? If not, and you just are the kind of folks who like to have your t's crossed and i's dotted - then I would recommend reviewing the offer forms used in your area with your attorney, before any new offers arrive. This way, when the next offer comes in, you will be comfortable with the terms and will be able to act quickly.
Again, I don't think we have enough information to lay blame at either the brokers actions or at yours. Look at the positives of the situation instead - she(or he) brought you a buyer, willing to make an offer which was in the right ballpark. So pricing and the marketing plan are not a problem. I would hang in there a little longer, be clear that you were disappointed with the way this played out, and with what steps you will both take to avoid this in the future. Have faith that for whatever reason, this was not meant to be and there is a better buyer out there for you. Best Wishes, Stacey